Marketing
14th Edition
ISBN: 9781259924040
Author: Roger A. Kerin, Steven W. Hartley
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 13, Problem 6AMK
A student theater group at a university has developed a demand schedule that shows the relationship between riches prices and demand paced on a student survey (See the table that follows). (a) Graph the demand curve and the total revenue curve based on these data. What ticket price might be set based on this analysis? (b) Whit other factors should be considered before the final price is set?
| Ticket Price | Number of Students Who Would Buy |
| $1 | 300 |
| 2 | 250 |
| 3 | 200 |
| 4 | 150 |
| 5 | 100 |
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c. Compute and tabulate the daily demand for each month in the table below (round off to the nearest whole number).
MONTH
PRODUCTION DAYS
DEMAND FORECAST
DEMAND PER DAY
JAN 2022
16
150
?
FEB 2022
16
150
?
MAR 2022
23
250
?
APR 2022
21
250
?
MAY 2022
22
400
?
JUN 2022
22
500
?
JUL 2022
21
600
?
AUG 2022
20
750
?
SEP 2022
20
450
?
OCT 2022
20
250
?
NOV 2022
16
150
?
DEC 2022
16
150
?
TOTAL
?
?
d. Assuming that MPQ Limited had adopted a level strategy for the year ended 31 December 2022, compute the average daily demand for the year (round off to the nearest whole number).
e. Prepare a graph showing the monthly forecasts and average daily forecast (in units per day) for MPQ Limited.
Light demand
moderate demand
heavy demand
Probability
0.25
0.45
0.3
Tire type
A
$325000
$190000
$170000
B
$300000
$420000
$400000
C
-$400000
$240000
$800000
A what decision should the firm make if the maximax criterion is used.
B. what decision should the firm make if the maximin criterion is used.
C. what decision should the firm make if LaPlace criterion is used.
D. Construct a decision tree to help the management of big wheel distributor make the appropriate decisions. This tree must be constructed in logical order with labels and net payoffs
E. Given the probabilities of the three types of tires and the expected monetary values, what decision should be made and what is that optimal expected value
F. What is the most should the firm be willing to pay to obtain further (perfect) information (EVPI) concerning the demand for the tires
Supply/Demand Info
Predicted Sales
Regular production
Overtime production
Subcontract production
Ending inventory
Hired employees
Fired employees
Total employees
Cost variables are as follows:
Cost Variables
Labor cost/hour
Overtime cost/ton
Subcontracting costiton
Holding cost ton/month
Hiring cost employee
Firing cost/employee
Beginning Apr May
4,200
531
$20
$32
$25
$10
$3.700
$4.000
Jun
51,500 50.300 61,600
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/ton
Regular production tons/employee/month
Max regular production (tons/month)
Max overtime production (tons/month)
Max subcontractor production (tons/month)
3
100
56,700
3,700
6,000
Jul Aug Sep
45,400 56.600 62,800
Given the above information (and don't overlook beginning number of employees and inventory levels in the first table), create a LEVEL production plan with
only the use of regular production and no inventory left over at the end of the six-month period.
What is the regular…
Chapter 13 Solutions
Marketing
Ch. 13.1 - Prob. 13.1LOCh. 13.1 - Prob. 13.1LRCh. 13.1 - Prob. 13.2LRCh. 13.1 - Prob. 13.3LRCh. 13.2 - Prob. 13.2LOCh. 13.2 - Prob. 13.4LRCh. 13.2 - Prob. 13.5LRCh. 13.2 - Prob. 13.6LRCh. 13.3 - Prob. 13.3LOCh. 13.4 - Prob. 13.4LO
Ch. 13.4 - What is the difference between a movement along a...Ch. 13.4 - Prob. 13.8LRCh. 13.4 - Prob. 13.9LRCh. 13.5 - Prob. 13.5LOCh. 13.5 - Prob. 13.10LRCh. 13.5 - Prob. 13.11LRCh. 13 - Prob. 1AMKCh. 13 - Prob. 2AMKCh. 13 - Prob. 3AMKCh. 13 - Prob. 4AMKCh. 13 - Prob. 5AMKCh. 13 - A student theater group at a university has...Ch. 13 - Prob. 7AMKCh. 13 - Prob. 8AMKCh. 13 - Prob. 9AMKCh. 13 - Prob. 1BYMPCh. 13 - Prob. 2BYMPCh. 13 - Prob. 3BYMPCh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Prob. 3VCCh. 13 - Prob. 4VCCh. 13 - Prob. 5VC
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