Question: I need help in this question. Please solve this question on EXCEL as i posted it below. Please show me all the formulas and also
I need help in this question. Please solve this question on EXCEL as i posted it below. Please show me all the formulas and also if use any method like SOLVER or so, please show me the steps so i can do it myself. PLEASE DON'T COPY WRONG OR UNRELATED QUESTIONS/SOLUTIONS FROM CHEGG... Please answer this one as i posted in excel




Sam's Bookstore, with many locations across the United States, places orders for all of the latest books and then distributes them to its individual bookstores. Sam's needs a model to help it order the appropriate number of any title. For example, Sam's plans to order a popular new hardback novel, which it will sell for $32. It can purchase any number of this book from the publisher, but due to quantity discounts, the unit cost for all books it orders depends on the number ordered. Specifically, if the number ordered is less than 800, the unit cost is $25. After each 800, the unit cost drops: to $24 for at least 800 copies; to $23.5 for at least 1500; to $23 for at least 2500; to $22.5 for at least 3500; to $22 for at least 4500; and to $20 for at least 6000. Sam's is very uncertain about the demand for this bookit estimates that demand could be anywhere from 500 to 4500. Also, as with most hardback novels, this one will eventually come out in paperback. Therefore, if Sam's has any hardbacks left when the paperback comes out, it will put them on sale for $15, at which price it believes all leftovers will be sold. (a) Please complete the data table of profit. (b) Please find out the optimal order quantity using the given discrete distribution for customer demand. B C D E TI F G Quantity discount structure At least Unit cost 0 800 1500 3500 2500 3500 4500 1 Ordering decision with quantity discounts 2 3 Inputs 4 Unit cost - see table to right 5 Regular price 6 Leftover price 7 8 Decision variable 9 Order quantity 10 11 Uncertain quantity 12 Demand 13 Corresponding unit cost 14 15 Profit model 16 Units sold at regular price 17 Units sold at leftover price 18 Revenue 19 Cost 20 Profit 21 6000 2000 1000 1500 2000 2500 3000 3500 4000 4500 21 22 Data table of profit as a function of order quantity (along side) and demand (along top) 23 500 24 500 25 1000 26 1500 27 2000 28 2500 29 3000 30 3500 31 4000 32 4500 33 34 34 1000 0.05 1500 0.15 2000 0.25 2500 0.25 3000 0.15 3500 0.07 4000 0.04 4500 0.015 35 36 Model of expected demands 37 Demand 500 38 Probability 0.025 39 40 Order quantity Expected profit 41 500 42 1000 43 1500 44 2000 45 2500 46 3000 47 3500 48 4000 49 4500 50