A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand...
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A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The mini-mart purchases the magazines for $1.55 and sells them for $3.88. Any magazines left over at the end of the month are donated to hospitals and other health care facilities. Modify the newsvendor example spreadsheet to model this situation. Use what-if analysis to investigate the financial implications of this policy if the demand is expected to vary between 10 and 30 copies each month. The demand must be at least (Type a whole number.) copies for the gasoline mini-mart to break even. Newsvendor model spreadsheet 1 Newsvendor Model 2 3 Data 4 5 Selling price 6 Cost 7 Discount price 8 9 Model 0 11 Demand 12 Purchase Quantity 13 14 Quantity Sold 15 Surplus Quantity 16 17 Profit D $3.88 $1.55 SO 10 24 The formula for the quantity sold is =MIN(B11,B12). The formula for the surplus quantity is =MAX(0,B12-B11). The formula for the profit is =B14*B5-B12*B6. A gasoline mini-mart orders 24 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The mini-mart purchases the magazines for $1.55 and sells them for $3.88. Any magazines left over at the end of the month are donated to hospitals and other health care facilities. Modify the newsvendor example spreadsheet to model this situation. Use what-if analysis to investigate the financial implications of this policy if the demand is expected to vary between 10 and 30 copies each month. The demand must be at least (Type a whole number.) copies for the gasoline mini-mart to break even. Newsvendor model spreadsheet 1 Newsvendor Model 2 3 Data 4 5 Selling price 6 Cost 7 Discount price 8 9 Model 0 11 Demand 12 Purchase Quantity 13 14 Quantity Sold 15 Surplus Quantity 16 17 Profit D $3.88 $1.55 SO 10 24 The formula for the quantity sold is =MIN(B11,B12). The formula for the surplus quantity is =MAX(0,B12-B11). The formula for the profit is =B14*B5-B12*B6.
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Related Book For
Business Analytics Methods Models and Decisions
ISBN: 978-0321997821
2nd edition
Authors: James R. Evans
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