Scenario C.3 Consider an Item with the Following Discrete Demand Distribution for Distribution

question 37

Multiple Choice

Scenario C.3
Consider an item with the following discrete demand distribution for a one-period inventory decision.

This item experiences a seasonal demand pattern. A profit of $15 per unit is made if the item is sold in season, but a loss of $10 per unit is incurred if the item is sold after the season is over.
-Use the information in Scenario C.3. What is the order quantity with the highest expected payoff?

• A) 20 units
• B) 30 units
• C) 40 units
• D) 50 units

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