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Inputs Regular Price Reduced Price Demand Probability Demand Probability

The document contains input data for a pricing optimization model, including demand probabilities and costs at different price points. It summarizes the results of running the model, finding the best quantity to supply is 11 shirts at the regular price to maximize total profit of $135. The document then shows updated input values with higher means and supply quantities. The updated results show the best quantity to supply is 12,000 shirts at the regular price to maximize total profit of $180,000.

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Dileep Karpur
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55 views4 pages

Inputs Regular Price Reduced Price Demand Probability Demand Probability

The document contains input data for a pricing optimization model, including demand probabilities and costs at different price points. It summarizes the results of running the model, finding the best quantity to supply is 11 shirts at the regular price to maximize total profit of $135. The document then shows updated input values with higher means and supply quantities. The updated results show the best quantity to supply is 12,000 shirts at the regular price to maximize total profit of $180,000.

Uploaded by

Dileep Karpur
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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INPUTS

Regular Price Reduced Price


Demand Probability Demand Probability
mean 9800 7 0.05 2 0.2 mean 3800
Std Dev 1300 8 0.1 3 0.3 Std Dev 1400
9 0.25 4 0.2
10 0.3 5 0.15
11 0.2 6 0.1
12 0.1 7 0.05

Regular Mean Reduced Mean


9 9553.07374 3 3806.313

Supply Quantity
9 10 11 12 13 14 15 16

Best Quantity to Supply


11
Cost of Each Shirt $10 Regular Sales $225
Regular Selling Price $25 Cost of Regular $90
Reduced Price $12.50 Discount Sales $0.00
Residual Loss $10 Residual Loss $0

Residual quantity 0 Total Profit $135.00


Reduced Price Quantity 0
Regular Quantity 9
INPUTS
Regular Price Reduced Price
Demand Probability Demand Probability
mean 9800 7 0.05 2 0.2 mean 3800
Std Dev 1300 8 0.1 3 0.3 Std Dev 1400
9 0.25 4 0.2
10 0.3 5 0.15
11 0.2 6 0.1
12 0.1 7 0.05

Regular Mean Reduced Mean


12454.51 4165.989

Supply Quantity
12000 12250 12500 12750 13000

12000

Best Quantity to Supply Best Quantity to supply


11 12,000
Cost of Each Shirt $10 Regular Sales $300,000
Regular Selling Price $25 Cost of Regular $120,000
Reduced Price $12.50 Discount Sales $0.00
Residual Loss $10 Residual Loss $0

Residual quantity 0 Total Profit $180,000.00


Reduced Price Quantity 0
Regular Quantity 12000

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