Question: In the inventory spreadsheet simulation of Section 3 . 2 . 3 and the Excel file Model 0 3 0 3 . xls , suppose

In the inventory spreadsheet simulation of Section 3.2.3 and the Excel file Model 0303.xls, suppose you had the choice between either hiring a really big person to do some negotiating with your supplier to get the unit wholesale cost down to $9.00 from $11.00, or hiring a slick advertising agency for some image hype and thus be able to charge $18.95 unit retail rather than $16.95 during the peak period (assume that the clearance retail price stays at $6.95 either way). Which would be better? Are you sure? Base your comparison on what seems to be the best (most profitable) value of h from each of the two alternatives (which may or may not be the same values of h).

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