The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 90 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 70 to 90 units, according to the following probability model: Demand 70 75 80 85 90 Probability 0.10 0.20 0.20 0.10 0.40 This textbook costs the bookstore $82 and sells for $112. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $40. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 70 75 p=0.20 p=0.20 80 85 Stock p=0.10 90 p=0.40 p=0.10 70 2100 2100 2100 2100 2100 75 $1,890 2250 2250 2250 2250 80
The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 90 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 70 to 90 units, according to the following probability model: Demand 70 75 80 85 90 Probability 0.10 0.20 0.20 0.10 0.40 This textbook costs the bookstore $82 and sells for $112. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $40. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 70 75 p=0.20 p=0.20 80 85 Stock p=0.10 90 p=0.40 p=0.10 70 2100 2100 2100 2100 2100 75 $1,890 2250 2250 2250 2250 80
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 54P
Related questions
Question
![The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 90
operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 70 to 90 units, according
to the following probability model:
Demand
70
75
80
85
90
Probability
0.10
0.20
0.20
0.10
0.40
This textbook costs the bookstore $82 and sells for $112. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $40.
a) Based on the given information, Vaidy's conditional profits table for the bookstore is:
Demand
70
75
80
85
90
Stock
p = 0.10
p= 0.20
p = 0.20
p = 0.10
p= 0.40
70
2100
2100
2100
2100
2100
75
$1,890
2250
2250
2250
2250
80](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96bc6193-a9e7-4716-b78f-2b2e254dbd91%2F9c427642-8cd7-49c3-aaea-4c110d4a32ae%2Fyg0sqj_processed.png&w=3840&q=75)
Transcribed Image Text:The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 90
operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 70 to 90 units, according
to the following probability model:
Demand
70
75
80
85
90
Probability
0.10
0.20
0.20
0.10
0.40
This textbook costs the bookstore $82 and sells for $112. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $40.
a) Based on the given information, Vaidy's conditional profits table for the bookstore is:
Demand
70
75
80
85
90
Stock
p = 0.10
p= 0.20
p = 0.20
p = 0.10
p= 0.40
70
2100
2100
2100
2100
2100
75
$1,890
2250
2250
2250
2250
80
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