Question: Let us continue considering the ONeills case. Suppose that ONeil is experiencing a volatile economic period and the management is much less optimistic about the
Let us continue considering the ONeills case. Suppose that ONeil is experiencing a volatile economic period and the management is much less optimistic about the growth of the sales in the upcoming season. Note that the average sales in the past season was only 824 units per product (standard deviation was 964). They would like to develop a more robust data-driven policy at least as a baseline instead of relying on personal experiences. That is, what if the demand pattern in the upcoming spring season remains the same as that of the last spring, how should they place order (assuming the retail price, sourcing cost and salvage value per unit are $190, $110 and $90, respectively)? Please use the sales data in the past season to conduct prospective analysis and perspective analysis, respectively. Use the sales data in the past season to train the optimal retrospective solution. ( Use the image below to refer for the data and provide answer in excel)
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