lgmt683 module 7 assignment Homework Exercises latest 2017 december

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.