The Demand for a Product Varies from Month to Month

question 140

Short Answer

The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand.

a.Determine the expected number of units demanded per month.
b.Each unit produced costs the company $8.00, and is sold for $10.00. How much will the company gain or lose in a month if they stock the expected number of units demanded, but sell 2000 units?

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Definitions:

Ratio Analysis

A quantitative analysis of information contained in a company’s financial statements, used to evaluate the overall financial condition and performance of a business.

Forecasting Method

A set of techniques used to predict future events or trends, such as market demand or sales, based on historical data and other information.

Operational Indices

Indicators or metrics used to measure and evaluate the performance and efficiency of an organization's operations.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone and ranks ideas according to collective agreement.