The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model: Demand 65 70 75 80 85 Stock 0.1 0.25 0.2 0.1 0.35 This textbook costs the bookstore $70 and sells for $95 Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund o $30. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 65 70 75 80 85 Stock 0.1 0.25 0.2 0.1 0.35 65 ? ? ? ? ?
The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model: Demand 65 70 75 80 85 Stock 0.1 0.25 0.2 0.1 0.35 This textbook costs the bookstore $70 and sells for $95 Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund o $30. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 65 70 75 80 85 Stock 0.1 0.25 0.2 0.1 0.35 65 ? ? ? ? ?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental
| Demand | |||||
| 65 | 70 | 75 | 80 | 85 | |
| Stock | 0.1 | 0.25 | 0.2 | 0.1 | 0.35 |
This textbook costs the bookstore $70 and sells for $95 Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund o $30.
a) Based on the given information, Vaidy's conditional profits table for the bookstore is:
| Demand | ||||||
| 65 | 70 | 75 | 80 | 85 | ||
| Stock | 0.1 | 0.25 | 0.2 | 0.1 | 0.35 | |
| 65 | ? | ? | ? | ? | ? |
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