Project #28210 - Supply Chain Management

I have a simple Probability scenario that I cannot remember how to do.

Consider the following demand scenario:

 

Quantity

Probability

4,000

10%

4,400

12%

4,800

18%

5,000

17%

5,600

13%

6,000

11%

6,400

8%

6,800

6%

7,200

5%

 

 

The variable production cost is $45/unit and the fixed cost is $135,000. The product is sold to end customers for $120/unit during the season and any unsold units are sold for $35/unit after the season.  In a buy back scenario, the manufacturer will buy back units at $55/unit.  Also, in a payback scenario, the retailer will pay $9 for each unit it does not purchase.  In both the payback and buy back scenarios, the manufacturer sells the product for $75.00.    

 

Subject Business
Due By (Pacific Time) 04/19/2014 07:00 pm
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