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The Lake Nocee Department Store has an opportunity to purchase a-(Answered)

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  • The Lake Nocee Department Store has an opportunity to purchase a special shipment of? X-mas tableware at $28 a set.? These sets of tableware are to be sold for $35 as a special promotion during the store?s 40th anniversary sale.? Nocee must purchase the items in units of a dozen sets.? Tableware is not part of the store?s normal product lines, so if items are not sold during the X-mas cum 40th anniversary, they will be sold in the Bargain Basement for $22.20 per set.? A sales consultant has estimated the following distribution of demand.

Demand (Dozens)?????????? Probability

???????????????????????

4 or less????????????????????? 0

5????????????????????????????????? 0.10

6????????? ??????????????????????? 0.15

7????????????????????????????????? 0.25

8????????????????????????????????? 0.20

9????????????????????????????????? 0.15

10??????? ??????????????????????? 0.10

11??????????????????????????????? 0.05

12??????????????????????????????? 0

Determine the optimal order quantity for Nocee regarding this item.

 

Paper#9209235 | Written in 27-Jul-2016

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