For a seasonal product, the wholesale order is $16.25 and the retail price is $26.59 one...

 

Transcribed Image Text:

For a seasonal product, the wholesale order is $16.25 and the retail price is $26.59 one month before the marketable season. If the product is sold out, it cannot be replenished at that time. Outdated products that can't be sold cost 14.95 yuan. According to previous years, the product demand distribution law is shown in the following table. Seek to maximize the expected profit of the order quantity. demand d distribution law p(D=d) 6 0. 03 7 8 0.05 0.07 9 10 0.15 0.20 11 0.20 12 13 0.15 0.07 14 0.05 15 0.03 For a seasonal product, the wholesale order is $16.25 and the retail price is $26.59 one month before the marketable season. If the product is sold out, it cannot be replenished at that time. Outdated products that can't be sold cost 14.95 yuan. According to previous years, the product demand distribution law is shown in the following table. Seek to maximize the expected profit of the order quantity. demand d distribution law p(D=d) 6 0. 03 7 8 0.05 0.07 9 10 0.15 0.20 11 0.20 12 13 0.15 0.07 14 0.05 15 0.03

Answer rating: 100% (QA)

Step 12 Cost of shortage Cs selling price buying price Cs is the lost profit from sale of one unit i... View the full answer