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Business, 19.03.2021 03:50 chloeholt123
Under the all-unit quantity discount contract, Hastings Sportswear’s optimal ordering quantity is with its expected/average profit of $ . (Hint: please round both of your answers to the nearest positive integer number. E. g., answers between 12345.01 and 12345.44 should be rounded down to 12345, and answers between 12345.45 and 12345.99 should be rounded up to 12346.) Now, instead of offering all-unit quantity discount, Global-Fashion offers an incremental quantity discount of 25%, if Hastings Sportswear orders 920 skiwear items or more (e. g., if Hastings Sportswear orders 1000, then it will pay $80 apiece for the first 920 items and pay $60 apiece for the additional 80 items). Build up your simulation model (the expected profit estimation should be based on the average profit of 100000 simulation runs) and answer the following question: Question 2: Under this incremental quantity discount contract, Hastings Sportswear’s optimal ordering quantity is with its expected/average profit of $ . (Hint: please round both of your answers to the nearest positive integer number.)
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