The local office of tourism sells souvenir calendars

Assignment Help Operation Management

Reference no: EM13862973

The local Office of Tourism sells souvenir calendars. The head of the office, Lucy, needs to order these calendars in advance of the main tourist season. Based on past seasons, Lucy has determined the probability of selling different quantities of the calendars for a particular tourist season.

Demand for Calendars	Probability of Demand
75,000	0.15
80,000	0.20
85,000	0.25
90,000	0.30
95,000	0.10

The Office of Tourism sells the calendars for $12.95 each. The calendars cost Lucy $5 each. The salvage value is estimated to be $0.50 per unsold calendar. Determine how many calendars Lucy should order to maximize expected profits.

(i) Solve using EXCEL. Use formulas to compute the profit for the various combinations of purchase quantity and demand.

(ii) Also, remember to provide a written response to the question posed in the problem.

Reference no: EM13862973

Questions Cloud

Distribute the image of marilyn monroe : What do you believe is the logic behind Warhol's repetition of the image. How does his theme relate to the mass media outlets used to distribute the image of Marilyn Monroe. Justify your respond.

Explain the importance of information technology : As you have discussed so far in this course, healthcare has lagged behind other industries in terms of digitization of records, in particular patient health records. Write a paper that includes the following: Explain the importance of information t..

Hayes electronics assumed with certainty : Hayes electronics assumed with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degree of unce..

Need to specify in the equation dialogue box : What three things do you need to specify in the Equation dialogue box? -The equation specification-The estimation method

The local office of tourism sells souvenir calendars : The local Office of Tourism sells souvenir calendars. The head of the office, Lucy, needs to order these calendars in advance of the main tourist season. Based on past seasons, Lucy has determined the probability of selling different quantities of th..

How did he influence green architecture : Write a thesis, state your purpose for the paper. Remember that this should be an idea, an opinion or even an exploratory perspective.

Goods and service design concepts are integrated. : Thoroughly analyzed how each of their goods and service design concepts are integrated. Thoroughly evaluated the role their inventory plays in the company's performance, operational efficiency, and customer satisfaction.

What can be done to ensure its effectiveness : What are some reasons why on-the-job training can prove ineffective? What can be done to ensure its effectiveness?

Adult learning theory : What value would it be to know that you were going to be training a class of persons between the ages of 20 and 35? Would it influence the approach you would take? How? Consider the ages of persons in the class mentioned in the previous question.

User Account

All Pages