Question: Consider two products, A and B , that have identical cost, retail price, and demand parameters and the same short selling season ( March to
Consider two products, A and B that have identical cost, retail price, and demand parameters and the same short selling season March to May Product A will be discontinued at the end of the season this year and any leftover inventory of A will be salvaged at of the cost.Product B will be reoffered next year, so any leftovers this year can be carried over to the next year while incurring a holding cost on each unit left over equal to of the product's cost. The vendor intends to choose the order quantity for either products to maximize the expected profits. How do these quantities compare?The quantity of product B is higher.The quantity of product A is higher.The quantities are equal.The answer cannot be decided from the information given here.
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