QUESTION 19 (This problem description is for Questions 17-21) Sam's Club sells a particular model of...

 

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QUESTION 19 (This problem description is for Questions 17-21) Sam's Club sells a particular model of air conditioner that it purchases from Kool King. Most sales are made in June and July. Sam's makes a one-time purchase of air conditioners in May at a cost of $200 each and sells each air conditioner for $400. Any air conditioners unsold at the end of July are marked down to $175 and sold in a special sale. All marked-down air conditioners are sold. The total (June + July) customer demand distribution for air conditioners is given below (predicted based on data analysis): 6,000 Demand X Probabi lity 0.04 7,000 0.08 8,000 0.12 9,000 10,000 0.16 0.2 11,000 12,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. 0.16 0.10 13,000 What is the expected sales (in units) if the optimal order quantity (that maximizes the expected profit) is ordered? 9995 10500 10000 9980 11000 9950 0.10 14,000 0.04 Save QUESTION 19 (This problem description is for Questions 17-21) Sam's Club sells a particular model of air conditioner that it purchases from Kool King. Most sales are made in June and July. Sam's makes a one-time purchase of air conditioners in May at a cost of $200 each and sells each air conditioner for $400. Any air conditioners unsold at the end of July are marked down to $175 and sold in a special sale. All marked-down air conditioners are sold. The total (June + July) customer demand distribution for air conditioners is given below (predicted based on data analysis): 6,000 Demand X Probabi lity 0.04 7,000 0.08 8,000 0.12 9,000 10,000 0.16 0.2 11,000 12,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. 0.16 0.10 13,000 What is the expected sales (in units) if the optimal order quantity (that maximizes the expected profit) is ordered? 9995 10500 10000 9980 11000 9950 0.10 14,000 0.04 Save

Answer rating: 100% (QA)

Solution Demand x Probability p 6000 7000 8000 9000 ... View the full answer