GilaShoes - Gila Shoes Exercise: IF, MAX, & MIN...

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Gila Shoes Exercise: IF, MAX, & MIN Step-by-Step E XCEL R EVIEW 2001-2002
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1 Gila Shoes The Exercise Background Rob owns a Fast Feet running store in Carrboro. For a month-long promotion for his store’s new location in Carr Mill Mall, Rob plans to offer the new Gila “marathon trainer XT” women’s’ running shoe to his customers at a discounted price. For a limited time, Rob can order the shoes directly from a wholesaler at $40 a pair. During his store promotion Rob plans to make this popular shoe available to his customers for $65 a pair, an attractive discount from the MSRP of $84, leaving Rob a profit of $25 each. To get the $40 price Rob must place his order two months in advance. If customer demand exceeds the quantity Rob orders in advance, he must meet the excess demand by obtaining Gila shoes from another supplier at a higher cost, $55 a pair. However, if after the month-long promotion period is over, customer demand has fallen short of the quantity he ordered in advance, he’ll be forced to list the over-stocked shoes on his store’s website sale page at $35 a pair. What to Build Build a spreadsheet that captures the information above and allows Rob to change the values of Quantity Ordered and Demand in the model to see how revenues and costs are affected under different conditions. For example, what happens if Rob orders 200 pairs of shoes but demand is only 50? Or, if he orders 100 pairs of shoes and demand is 150?
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This note was uploaded on 12/20/2011 for the course BUS 101 taught by Professor Ecklund during the Spring '01 term at Duke.

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GilaShoes - Gila Shoes Exercise: IF, MAX, & MIN...

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