Exercise 22.2
For the following, set-up the opportunity loss table
a_1 a_2
s_1 55 26
s_2 43 38
s_3 29 43
s_4 15 51
Exercise 22.11
The owner of a clothing store must decide how many men's shirts to order for the new season. She must order in quantities of 100.
If order Cost per shirt
100 $10.00
200 $9.00
300 or more $8.50
Owner's selling price $12.00
End-of-season price $6.00
Anticipated Demand for this Shirt
100
150
200
250
She would rather understock than overstock.
She must order today for the entire season.
Instructions:
(a) Construct the payoff table to help the owner decide how many shirts to order.
(b) Set up the opportunity loss table.
