The producer MAKES the product, and sells it to retailers. The consumers buy the products from the retailers.
Answer:
Explanation:
What is given:
Demand Prob Cumulative Prob
5 0.25 0.25
10 0.45 0.70
15 0.20 0.90
20 0.10 1.00
Cost of underage or profit lost, Cu = Selling price - Cost per dozen = 10 - 6.35 = 3.65
Cost of overage or cost of a lost sale, Co = Cost per dozen - Salvage value = 6.35 - 2 = 4.35
The critical fractile CF = Cu / (Co + Cu) = 3.65 / (4.35 + 3.65) = 0.456
For the order quantity to become optimal it shoud be greater than or equal to the CF.
Let's see when this happens:
Demand (dozens) Prob Cumulative Prob
5 0.25 0.25 < 0.456
10 0.45 0.70 > 0.456
15 0.20 0.90
20 0.10 1.00
This hapeens for 10 dozens of order size.
It is a true statement that extreme care need to be exercise while making decision involving capital investment.
<h3>What are
capital investment?</h3>
These are investment that entails a long-term commitment of funds for business operations.
These is an investment that allows a company to further its long-term business goals and objectives.
In conclusion, an extreme care is needed while deciding on capital investment because a wrong decision will affect the firm operation in the long run.
Read more about capital investment
<em>brainly.com/question/9144560</em>
Answer:
Explanation:
We will solve this linear programming problem using Excel -> Solver
Below excel screen prints show approach for the calculation
