we have 3000 units of product to sell over a five day period. from historical sales data, we have estimated the following demand curves: P = price/unit in $ Q = number of units sold Day 1: P-10-0.01Q , valid for prices between $3 and $8. Day 2, same as Day 1. Day 3, P=15-0.01Q valid for prices between $6 and $10, Day 4 P= 20-0.01Q valid for prices between $6 and $12, Day 5 same as Day 1. Fromulate as a Solver problem in Excel, What are the revenue maximizing prices for days 1-5? What is the maximum possible Revenue? If the price must be the same on each day, what is the revenue maximizing price? What is the Revenue? what is the revenue penalty for operating a fixed-price policy? Suppose that on day 1, we post the optimal price (from 1 aboe) but sales are 10% above estimated demand. Re-Solve the problem computing new optimal prices for days 2-5, assuming a demand is 10% above expected each day except the last day. What is the revenue? Repeat Q3 with an assumption of a fixed single price for the 5 days. What is the revenue? Again, compute the revenue penalty for operating a fixed price policy. Is 3,000 the optimal number of units to order? would you order more, or fewer? Repeat questions 3 and 4 under an assumption that demand is 10% below expected each day except the last. Assume inventory-clearing prices on the las day. What is the revenue penalty from fixed pricing?
we have 3000 units of product to sell over a five day period. from historical sales data, we have estimated the following
P =
Q = number of units sold
Day 1: P-10-0.01Q , valid for prices between $3 and $8. Day 2, same as Day 1. Day 3, P=15-0.01Q valid for prices between $6 and $10, Day 4 P= 20-0.01Q valid for prices between $6 and $12, Day 5 same as Day 1.
Fromulate as a Solver problem in Excel, What are the revenue maximizing prices for days 1-5? What is the maximum possible Revenue?
If the price must be the same on each day, what is the revenue maximizing price? What is the Revenue? what is the revenue penalty for operating a fixed-price policy?
Suppose that on day 1, we post the optimal price (from 1 aboe) but sales are 10% above estimated demand. Re-Solve the problem computing new optimal prices for days 2-5, assuming a demand is 10% above expected each day except the last day. What is the revenue?
Repeat Q3 with an assumption of a fixed single price for the 5 days. What is the revenue? Again, compute the revenue penalty for operating a fixed price policy.
Is 3,000 the optimal number of units to order? would you order more, or fewer?
Repeat questions 3 and 4 under an assumption that demand is 10% below expected each day except the last. Assume inventory-clearing prices on the las day. What is the revenue penalty from fixed pricing?
Step by step
Solved in 2 steps
