ESA Dealers, Inc. is contemplating on how many units of cars to order to meet the customer demands for the month based on the following projection: Demand Probability 1 unit 10% 50% 40% 2 unit 3 units The profit for each unit sold is P 200,000 while the carrying cost for each unit of unsold car is P 50,000. How many units of cars should ESA order and why?
ESA Dealers, Inc. is contemplating on how many units of cars to order to meet the customer demands for the month based on the following projection: Demand Probability 1 unit 10% 50% 40% 2 unit 3 units The profit for each unit sold is P 200,000 while the carrying cost for each unit of unsold car is P 50,000. How many units of cars should ESA order and why?
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.57TI: What is the total effect on the economy of a government tax rebate of $1,000 to each household in...
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Transcribed Image Text:14. ESA Dealers, Inc. is contemplating on how many units of cars to order to meet the customer demands for
the month based on the following projection:
Demand
1 unit
2 unit
Probability
10%
50%
3 units
40%
The profit for each unit sold is P 200,000 while the carrying cost for each unit of unsold car is P 50,000.
How many units of cars should ESA order and why?
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