Answered: The store wishes to determine the… | bartleby

Practical Management Science

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands for these two cameras are as follows: D. = demand for the Sky Eagle, P, is the selling price of the Sky Eagle, D, is the demand for the Horizon,
and
PH
is the selling price of the Horizon.
Ds = 225 – 0.60Ps + 0.35PH
DH = 269 + 0.10PS - 0.64PH
The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models. (Enter your answer in terms of P, and P.)
225P5 - 0.6P + 0.45P,PH
+ 269P- 0.64
H
Your answer cannot be understood or graded. More Information
revenue =
Find the prices that maximize revenue. (Round your answers to two decimal places.)
(Ps, PH) =
306.75,318

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Dilberts Department Store is trying to determine how many Hanson T-shirts to order. Currently the shirts are sold for 21, but at later dates the shirts will be offered at a 10% discount, then a 20% discount, then a 40% discount, then a 50% discount, and finally a 60% discount. Demand at the full price of 21 is believed to be normally distributed with mean 1800 and standard deviation 360. Demand at various discounts is assumed to be a multiple of full-price demand. These multiples, for discounts of 10%, 20%, 40%, 50%, and 60% are, respectively, 0.4, 0.7, 1.1, 2, and 50. For example, if full-price demand is 2500, then at a 10% discount customers would be willing to buy 1000 T-shirts. The unit cost of purchasing T-shirts depends on the number of T-shirts ordered, as shown in the file P10_36.xlsx. Use simulation to determine how many T-shirts the company should order. Model the problem so that the company first orders some quantity of T-shirts, then discounts deeper and deeper, as necessary, to sell all of the shirts.

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