Create payoff table that helps bicycle

Assignment Help Operation Management

Reference no: EM132110111

Zed and Adrian and run a small bicycle shop called "Z to A Bicycles". They must order bicycles for the coming season. Zed and Adrian estimate that the demand for bicycles this season will be 20, 30, 40, or 50 bicycles with probabilities of 0.2, 0.4, 0.3, and 0.1 respectively. Orders for the bicycles must be placed in quantities of twenty (20). The cost per bicycle is $70 if they order 20, $66 if they order 40, $60 if they order 60. The bicycles will be sold for $78 each if they are not on sale. Any bicycles left over at the end of the season will go on sale and will be sold at $52 each. Create a payoff table that helps Z to A Bicycle decide how many bicycles (20, 40, or 60) to order. Answer the following questions based on the payoff table. How much is the profit of the shop, if they order 40 bicycles and the demand is 20? How much is the profit of the shop, if they order 40 bicycles and the demand is 30? How much is the profit of the shop, if they order 40 bicycles and the demand is 40? How much is the profit of the shop, if they order 40 bicycles and the demand is 50?

Reference no: EM132110111

Questions Cloud

The code of ethics for officers and employees : This publication by the Florida Commission on Ethics is a very useful tool for understanding how this Constitutional Amendment and the Code of Ethics.

What are the critical social cultural practices : What are the critical social cultural practices that impact business relations in Africa?

Losses in piping systems experiment : plot the Loss Coefficient (k) data for the two valves vs the % Flow on the same graph and comment on the performance of these valves compared to each other

Number of laptops per quarter sold by a computer : The number of laptops per quarter sold by a computer outlet in a suburb was recorded, for three consecutive years from 2011 to 2013

Create payoff table that helps bicycle : Create a payoff table that helps Z to A Bicycle decide how many bicycles (20, 40, or 60) to order

Evaluate the key factors involved in sheepe : Discuss how the steps may differ for a health care organization compared to another industry.

The primary difference between dt-e and ot-e : What is the Program Manager (PM) role regarding acquisition T&E? Additionally, what are some PM responsibilities?

Hormone replacement therapy : When women go through menopause, the production of hormones in their bodies changes. The hormonal changes can cause a variety of symptoms

Leadership strategy for translating your vision : Excluding title and References slides, that includes a leadership strategy for translating your vision into organizational success.

User Account

All Pages