Question: A retail store purchases computer software from a distributor for resale. For an upcoming promotion, the retailer needs to determine the best order size for
A retail store purchases computer software from a distributor for resale. For an
upcoming promotion, the retailer needs to determine the best order size for a
onetime purchase. One of the products is a word processing software program
that will have a special sale price of $ The retailer estimates the probabilities
for selling various quantities as follows:
The program can be purchased from the distributor for $ each, but there is a
restocking charge of percent of the purchase price for the return to the distrib
utor of any unsold programs.
What size of a purchase order should the retailer commit to
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