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

question 8

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 payoff when 40 units are ordered but a demand of 50 materializes?

• A) $150
• B) $300
• C) $450
• D) $600

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Definitions:

Aversive Event

An unpleasant or harmful event or stimulus that an organism seeks to avoid or escape.

Avoidance Response

A behavior aimed at preventing an unpleasant or harmful event before it occurs.

Imitate

To copy or mimic the actions, appearance, or speech of another person or thing, often to learn or practice a specific behavior or skill.

Aggressive Behavior

Actions intended to harm or intimidate others, which can be a response to a perceived threat or a means to assert dominance.