Construct the table of conditional profits

Assignment Help Project Management

Reference no: EM131260633

The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 90 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 70 to 90 units, according to the following probability model.

1424_Fig 9.jpg

This textbook costs the bookstore $82 and sells for $112. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $36.

a) Construct the table of conditional profits.

b) How many copies should the bookstore stock to achieve highest expected value?

Reference no: EM131260633

Questions Cloud

What elements of a contract must be present in employment : What elements of a contract must be present in the employment contract? What are some example terms for each element? Would you include a covenant not to compete?

Construct a bond graph model of this component : The figure shows an air cylinder that could be used as an actuator in a control system. The inlet ports at the top and bottom can be exposed to a supply at pressure Ps and temperature Ts or to exhaust at Pa and Ta.

Do you believe these mental models can be changed : Do you believe these mental models can be changed? If so, what would it take to change these mental models and if not, why do you believe they can't be changed.

Name of the tcp-ip protocol : What is the name of the TCP/IP protocol that is used to view web pages, and what is the well-known TCP port number for this protocol?

Construct the table of conditional profits : Construct the table of conditional profits. - How many copies should the bookstore stock to achieve highest expected value?

Case study - cola wars continue - coke and pepsi in 2010 : Case Study - Cola Wars Continue: Coke and pepsi in 2010 - Please answers the questions using the format given and do it exactly as follow font and number of line and double space,each question with answer in one page

How the position could further expand the new line : how the position could further expand the new line and further increase profit, how you would utilize this person (you can get creative with this aspect) and the risk to the corporation is minimal as evident of the projected profitability.

Explain whether you think these forces will diminish : Write an essay (750-1,000 words) describing the sociological reasons that gender, race, and age discrimination occur in American society. Explain whether you think these forces will diminish or become more prevalent in the near future.

What is the importance of team work : What is the importance of Team Work? Draw the Team Responsibility Diagram as well as Draw the diagram of Team Action Cycle and list out the characteristics of Effective Team members.

User Account

All Pages