If Flora Co adopts the minimax regret approach, how many bunches of flowers will it buy from itssupplier in Quarter 1?bunches Flora Co sells bunches of fresh flowers which have a limited shelf life so forecasting sales demand isextremely important for maximising profits.Quarter 1Quarter 1 contains a national holiday and as a result sales of a particular red flower are usually very high.Sales of the red flower will depend on market conditions. After the national holiday there will be no demandfor the red flowers and they will be thrown away. Flora Co must decide whether to purchase 250 bunches,400 bunches or 500 bunches of the red flowers from its supplier for re-sale to its customers.The following payoff table has been produced:Market conditionsPoorGoodExcellentExpected valueProbability0.200.250.55Number of bunches to be bought from supplier400$900$3,900$3,900250$2,400$2,400$2,400$2,400$3,300500($100)$2,900$4,900$3,400

Find the given details below: Given details:Number of BunchesMarket ConditionsPoorGoodExcellent250…

Answered: Flora Co sells bunches of fresh flowers…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section2.6: Estimating The Relationship Between Price And Demand

Problem 13P

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