Use This Information to Answer the Following Questions

question 41

Essay

Use this information to answer the following questions.
A supermarket stocks 150 apple pies each week.Weekly demand for apple pies ranges between 90 and 160 pies,all occurring with equal probability.Each unsold pie incurs an inventory carrying cost of $2.00.Unmet demand costs the supermarket $4.00 per pie.
-Refer to the information above.Suppose that the manager wishes to examine the effect of different stocking levels on the average weekly total costs.In specific,the manager wishes to consider stocking levels of 90 pies,110 pies,130 pies,and 150 pies.Use Crystal Ball's Decision Table to find the stocking level that minimizes average weekly total costs.Use 1000 replications.

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Definitions:

Sole Proprietorship

A business structure owned by a single individual, where the owner is personally responsible for all financial obligations and liabilities.

Personal Economic Events

This refers to financial transactions and activities that directly affect an individual's economic situation, such as income, expenditures, savings, and investments.

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition.

Fair Value

Fair Value is a financial term describing the estimated worth of an asset or liability in the marketplace, based on current prices and considering factors like utility and risk.