Data Analysis, A buyer for a large department store chain must place orders with an, Database Management System

Data Analysis, Database Management System

Assignment Help:

A buyer for a large department store chain must place orders with an athletic shoe manufacturer six months prior to the time the shoes will be sold in the department stores. In particular, the buyer must decide on November 1 how many pairs of the manufacturer’s newest model of tennis shoes to order for sale during the coming summer season. Assume that each pair of this new brand of tennis shoes costs the department store chain $45 per pair. Furthermore, assume that each pair of these shoes can then be sold to the chain’s customers for $70 per pair. Any pairs of these shoes remaining unsold at the end of the summer season will be sold in a closeout sale next fall for $35 each. The probability distribution of consumer demand for these tennis shoes during the coming summer season has been assessed by market research specialists and is provided
Consumer Demand Probability
1 0.05
2 0.15
3 0.25
4 0.30
5 0.15
6 0.10
. Finally, assume that the department store chain must purchase these tennis shoes from the manufacturer in lots of 100 pairs. a. Create a payoff table that specifies the contribution to profit (in dollars) from the sale of the tennis shoes by this department store chain for each possible purchase decision and each outcome with respect to consumer demand. Build the payoff matrix model in each case. In displayed comment boxes or textboxes, show one or two typical formulae used to compute the payoffs. To enable the interpretation of formulae, your model needs to display row and column headings. As we have discussed, this is easy using the Snipping tool. For problem 42 only, apply the following decision criteria: maximin (pessimist’s criterion), minimax regret (doesn’t use probabilities), EMV and EOL. Write a sentence stating the optimal solution for each of the 4 criteria. The statement should contain the recommended strategy and the value of the payoff. Hint for 42: The optimal EMV solution is to order 700 pairs.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

Data Analysis, Database Management System

Related Discussions:- Data Analysis

Define catalog and meta data, Define Catalog and meta data ? A catalog ...

Development of an ER diagram and database implementation, i want answers th...

#title using the invoice, using the invoice table shown below,write the rel...

Explain the deferred update, Explain the Deferred Update The deferred ...

Determine the programming language structures, What is the most significant...

What is called bit-level striping, Normal 0 false false fal...

Objectives-distributed and client server databases, Objectives diff...

Project, I have a small project that contains 3 deliverable s. I have done ...

Need vmware technical support, Project Description: Critical Project for...

Define entity integrity and referential integrity, Define entity integrity ...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT