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Homework: Fill in the blank_ch17_5pm_7/6_no time limits (3 a Save core: 0 of 3 p

ID: 2945930 • Letter: H

Question

Homework: Fill in the blank_ch17_5pm_7/6_no time limits (3 a Save core: 0 of 3 pts X 17.2.6 A3 or 5 (3 complete)I HW Score: 32%, 48 of 15 pts Question Help * Nick sells live Christmas trees each year beginning in late Novemeber. He needs to deciding whether to order 100, 200, or 300 trees because he expects demand to be 100, 200, or 300 trees for the season. Nick buys the trees for $20 apiece and then sels them to his customers for $50 apiece. The cost to rent the lot that Nick is using for his business is $1,100 for the season Assume any leftover trees have no place an order for the Douglas fr variety in early falt from the tree farm Nick is leftover value Construct a decision table for Nick Complete the decision table Demand 2D0 Aternative 100 300 Order 100 Order 200 Order 300 (Simplify your answers )

Explanation / Answer

Event: Order 100 and Demand 100

Profit = (100 * $50) - (100 * $20) - $1,100 = +$1,900

Event: Order 200 and Demand 100

Profit = (100 * $50) - (200 * $20) - $1,100 = - $100

Event: Order 300 and Demand 100

Profit = (100 * $50) - (300 * $20) - $1,100 = - $2,100

Event: Order 100 and Demand 200

Profit = (100 * $50) - (100 * $20) - $1,100 = +$1,900

Event: Order 200 and Demand 200

Profit = (200 * $50) - (200 * $20) - $1,100 = + $4,900

Event: Order 300 and Demand 200

Profit = (200 * $50) - (300 * $20) - $1,100 = +$2,900

Event: Order 100 and Demand 300

Profit = (100 * $50) - (100 * $20) - $1,100 = +$1,900

Event: Order 200 and Demand 300

Profit = (200 * $50) - (200 * $20) - $1,100 = + $4,900

Event: Order 300 and Demand 300

Profit = (300 * $50) - (300 * $20) - $1,100 = +$7,900

As all the pay-offs can be divided by 1000 for simplification. The completed decision table is as follows.

Alternative

Demand

100

200

300

Order 100

1.9

1.9

1.9

Order 200

-1.0

4.9

4.9

Order 300

-2.1

2.9

7.9

Alternative

Demand

100

200

300

Order 100

1.9

1.9

1.9

Order 200

-1.0

4.9

4.9

Order 300

-2.1

2.9

7.9