Module 7 assignment Homework
Exercises
Chapter 13 – Determining the Optimum Level of Product
Availability
Using the Sportmart DemoPreview the documentView in a new window,
the manager decided to conduct market research and, based on the additional
information she obtained from the research, she believes that the standard
deviation of demand can be reduced to 50 instead of 100. What is the impact of
profitability? What happens to profitability if the standard deviation of
demand increases to 150? What did you learn from this exercise?
Note: This is not a “Solver” problem. Just change the
Standard Deviation directly in Excel from 100 to 50 and then 150 to see the
impact on profitability.
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