The National Sales Manager for "I Colored This" (ICT) T-Shirts

question 48

Multiple Choice

The national sales manager for "I colored this" (ICT) T-shirts provides all salespersons with the following opportunity loss table showing the potential lost profit for each purchase decision or act from one to four dozen T-shirts. The probability of demand for each state of nature is also shown. How many dozen T-shirts should you purchase based on minimizing the expected opportunity loss?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Seasonal Patterns

Seasonal patterns are recurring fluctuations in data or activity levels that occur at specific times of the year.

Unanticipated Fluctuations

These are unexpected changes in financial markets, economic conditions, or company specifics that can influence financial outcomes.

Inventory Management

The practice of ordering, storing, tracking, and controlling inventory to ensure the availability of products while minimizing costs and storage space.

Stock-Out

A situation where inventory is exhausted and unavailable for sale or use, often leading to lost sales or production delays.