Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 A)If the owner of Birka Styles & Co is an optimist, how many lots should the manager order? B)If the owner of Birka Styles & Co is a pessimist, how many lots should the manager order? C)The owner wants to use minimax regret. How many lots should the manager order
2.)Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering.
DEMAND |
|||
Order size |
Low |
Medium |
High |
1 lot |
12,000 |
15,000 |
15,000 |
2 lots |
9,000 |
25,000 |
35,000 |
3 lots |
6,000 |
35,000 |
60,000 |
A)If the owner of Birka Styles & Co is an optimist, how many lots should the manager order?
B)If the owner of Birka Styles & Co is a pessimist, how many lots should the manager order?
C)The owner wants to use minimax regret. How many lots should the manager order?
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