{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Supply chain mgt Walton_atalay

# Supply chain mgt Walton_atalay - Each replication in this...

This preview shows pages 1–2. Sign up to view the full content.

Demand distribution Cum ProbProbability Demand 0.00 0.30 100 0.30 0.20 150 0.50 0.30 200 0.80 0.15 250 0.95 0.05 300 Walton Bookstore has a single order opportunity for calendars each year. Each calendar cost \$7.50 and is sold for \$10. After February, all unsold calendars are returned to the publisher for a refund of \$2.50. Walton must determine how many calendars to order before the start of the selling season. Their probability distribution for demand is given below. We will determine the best order quantity using both expectation and simulation. The expectation method is setup in the "Exp Profit" sheet. Your job is to put in the formulas for the area shaded in purple. Once the correct formulas are enterded, the best order quantity can be chosen the the order quantity that gives the largest expected profit. The best order quantity can also be found using simulation which is setup in the "Simulation Model" sheet. Once again, your job is to figure out the formulas in the purple shaded area.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Each replication in this model represents a separate selling season. Calculation of Expected Profit for Walton's bookstore Cost data Demand distribution Unit cost \$7.50 Cum Prob Probability Demand Unit price \$10.00 0.00 0.30 100 Unit refund \$2.50 0.30 0.20 150 0.50 0.30 200 Decision variable 0.80 0.15 250 Order quantity 0.95 0.05 300 Probability Times Demand Realization 0.30 0.20 0.30 0.15 0.05 Expected Order Qnty 100 150 200 250 300 Profit 100 \$250.00 \$250.00 \$250.00 \$250.00 \$250.00 250 150 \$0.00 \$375.00 \$375.00 \$375.00 \$375.00 262.5 200 (\$250.00) \$125.00 \$500.00 \$500.00 \$500.00 200 250 (\$500.00) (\$125.00) \$250.00 \$625.00 \$625.00 25 300 (\$750.00) (\$375.00) \$0.00 \$375.00 \$750.00 -206.25 Determine the formulas for inside of the table. A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

Supply chain mgt Walton_atalay - Each replication in this...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online