Data Analysis, Database Management System

Assignment Help:
A buyer for a large department store chain must place orders with an athletic shoe manufacturer six months prior to the time the shoes will be sold in the department stores. In particular, the buyer must decide on November 1 how many pairs of the manufacturer’s newest model of tennis shoes to order for sale during the coming summer season. Assume that each pair of this new brand of tennis shoes costs the department store chain $45 per pair. Furthermore, assume that each pair of these shoes can then be sold to the chain’s customers for $70 per pair. Any pairs of these shoes remaining unsold at the end of the summer season will be sold in a closeout sale next fall for $35 each. The probability distribution of consumer demand for these tennis shoes during the coming summer season has been assessed by market research specialists and is provided
Consumer Demand Probability
1 0.05
2 0.15
3 0.25
4 0.30
5 0.15
6 0.10
. Finally, assume that the department store chain must purchase these tennis shoes from the manufacturer in lots of 100 pairs. a. Create a payoff table that specifies the contribution to profit (in dollars) from the sale of the tennis shoes by this department store chain for each possible purchase decision and each outcome with respect to consumer demand. Build the payoff matrix model in each case. In displayed comment boxes or textboxes, show one or two typical formulae used to compute the payoffs. To enable the interpretation of formulae, your model needs to display row and column headings. As we have discussed, this is easy using the Snipping tool. For problem 42 only, apply the following decision criteria: maximin (pessimist’s criterion), minimax regret (doesn’t use probabilities), EMV and EOL. Write a sentence stating the optimal solution for each of the 4 criteria. The statement should contain the recommended strategy and the value of the payoff. Hint for 42: The optimal EMV solution is to order 700 pairs.

Related Discussions:- Data Analysis

Stock market, need requirement analysis for database management of stock ma...

need requirement analysis for database management of stock market

Explain the advantages of dbms over file oriented system, Explain the main ...

Explain the main advantages of DBMS over File Oriented System ?

Tour Operator Agency Database , #A multinational tour operator agency has g...

#A multinational tour operator agency has gained new business growth in the North American market through the use of social media. Its operation has expanded by 50% within six mont

Non-query optimisations, Part: Recommended (Non-query) Optimisations Thi...

Part: Recommended (Non-query) Optimisations This section entitled "Recommended (non-query) optimisations" should be a brief report containing recommended optimisations you would

Define the third normal form, Define the Third Normal Form: The third ...

Define the Third Normal Form: The third normal form (3NF) is a normal form employed in database normalization. 3NF was initially defined by E.F. Codd in 1971. Codd's definitio

Design and building a distributed information system, prototype of a distri...

prototype of a distributed information system for a national car part retail outlet chain.

single products ordered, For Colorado customers calculate the number of si...

For Colorado customers calculate the number of single products ordered. If a product is purchased on multiple orders, it should be counted only single time. The result should conta

Student database, tell me the functionality,advantages and disadvantages of...

tell me the functionality,advantages and disadvantages of student database

Define granularity and hierarchy of granularity of locks, Define granularit...

Define granularity, hierarchy of granularity of locks & multiple granularity locking. Explain the modified two phase locking along with multiple granularity locking. Ans: The s

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd