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Business, 09.03.2020 20:42 jcastronakaya
Build up your descriptive model for the allâunit quantity discount contract and show the following two measures: (i) Hastings Sportswearâs profit and (ii) GlobalâFashionâs profit. For a given actual demand of 900 and a given quantity ordered by Hastings Sportswear of 1200 , if the descriptive model is built correctly, then Hastings Sportswearâs and GlobalâFashionâs profit will be $17,100 and $44,400, respectively. Input the random number to generate the actual demand and build up your simulation model to answer the following questions: Under the allâunit quantity discount contract, what is Hastings Sportswearâs optimal ordering quantity? What would be the expected profits for Hastings Sportswear and GlobalâFashion (the expected profit estimation should be based on the average profit of 100,000 simulation runs)? Comparing to the wholesale contract, should GlobalâFashion offer the allâunit quantity discount contract?
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Build up your descriptive model for the allâunit quantity discount contract and show the following t...
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