Walton1 - ORDERING CALENDARS AT WALTON BOOKSTORE In August Walton Bookstore must decide how many of next year's nature calendars to order Each

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Calendars Demanded probability 100 0.30 150 0.20 200 0.30 250 0.15 300 0.05 Table 1 ORDERING CALENDARS AT WALTON BOOKSTORE In August, Walton Bookstore must decide how many of next year's nature calendars to order. E the bookstore $7,5 and is sold for $10. After February 1, all unsold calendars will be returned to refund of $2,5 per calendar. Walton believes that the number of calendars it can sell by Februa probability distribution shown in Table 1. Walton wants to develop a simulation model to help it calendars to order.
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Each calendar costs to the publisher for a ary 1 follows the it decide how many
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Simulation of Walton's bookstore Cost data Demand distribution Unit cost $7.50 Cum Prob Demand Probability Unit price $10.00 0.00 0.30 100 0.30 Unit refund $2.50 0.31 0.50 150 0.20 0.51 0.80 200 0.30 Decision variable 0.81 0.95 250 0.15 Order quantity 200 0.96 1.00 300 0.05 Summary measures for simulation below Average profit $182.75 95% confidence interval for expected profit Stdev of profit
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This note was uploaded on 05/31/2009 for the course MBA 4500 taught by Professor Eyupcetin during the Spring '09 term at Istanbul Technical University.

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Walton1 - ORDERING CALENDARS AT WALTON BOOKSTORE In August Walton Bookstore must decide how many of next year's nature calendars to order Each

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