Business
Business, 08.03.2021 19:30, chubby087

Suppose that it costs MCC $0.30 per day in holding costs for each monitor in beginning inventory, and it costs $20 to place an order. Each monitor sold generates a profit of $45, and each lost sale results in an opportunity cost of $65 (including the lost profit of $45 and $20 in lost goodwill). Modify the spreadsheet show below to determine the reorder point and order quantity that maximize the average monthly profit associated with this monitor. Millenium Computer Corp
Shipping Time Quantity Demanded
Days Prob. Days Prob.
3 0.20 0 0.01
4 0.60 1 0.02
5 0.20 2 0.04
Total 1.00 3 0.06
4 0.09
5 0.14
6 0.18
7 0.22
8 0.16
9 0.06
10 0.02
Total 1.00

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Answers: 2

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Suppose that it costs MCC $0.30 per day in holding costs for each monitor in beginning inventory, an...

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