Bin FrequencyCumulative % Bin FrequencyCumulative %

-300 2 33.33% More 4 66.67%

-200 0 33.33% -300 2 100.00%
-100 0 33.33% -200 0 100.00%
100 0 33.33% -100 0 100.00%
300 0 33.33% 100 0 100.00%
500 0 33.33% 300 0 100.00%
More 4 100.00% 500 0 100.00%
 Bin FrequencyCumulative %
-300 2 33.33%
-200 0 33.33%
-100 0 33.33%
100 0 33.33%
300 0 33.33%
500 0 33.33%
More 4 100.00%
 Bin FrequencyCumulative %
-300 2 33.33% Histogram
-200 0 33.33% 120.00%
4
-100 0 33.33% 80.00%

Frequency
0 0 33.33% 2 40.00% Frequency
100 0 33.33% 0 0.00% Cumulative %
300 0 33.33% 00 00 00 0 0 0 0 0 re
-3 -2 -1 1 3 Mo
More 4 100.00%
Bin
 Bin FrequencyCumulative %
-300000 0 0.00% Histogram
-200000 1 16.67% 4 120.00%
-100000 0 16.67% 80.00%
2

Frequency
0 1 33.33% 40.00%
Frequency
0 0.00% Cumulative %
100000 0 33.33%
00 00 00 e
300000 1 50.00% 0 0 0 or
00 00 1 00 M
More 3 100.00% -3 -1

Bin
 Bin Frequency
-300000 0 Histogram
-200000 1 4
-100000 0 2

Frequency
0 1
0 Frequency
100000 0
00 00 00 0 00 00 e
or
300000 1
0 00 0 00 0 00 00 00 M
-3 -2 -1 10 30
More 3
Bin
 Bin Frequency Bin Frequency
-300000 0 More 3 Histogram
-200000 1 -200000 1 4
-100000 0 0 1 2

Frequency
0 1 300000 1
0 Frequency
100000 0 -300000 0
e 0 0 00 00 00 00
or 00
300000 1 -100000 0 M 0 00 00 00 00
-2
0 30 -3
0
-1
0 10
More 3 100000 0
Bin
 Frequency
00
00
10
 Bin FrequencyCumulative %
-300000 0 0.00% Histogram
-200000 1 16.67% 4
-100000 0 16.67% 2

Frequency
0 1 33.33%
0 Frequency
100000 0 33.33%
00 00 00 0 00 00 e
or
300000 1 50.00%
0 00 00 00 00 00 M
-3 -2
0
-1
0 10 30
More 3 100.00%
Bin
 Inventory Problem

Proby. demand Exp Demand

11 8000 880
11 10000 1100
28 12000 3360
22 14000 3080
18 16000 2880
10 18000 1800
13100 Avg. demand

Prod Profit
8000 260000
10000 359900
12000 410685.6
16000 294500
20000 75500

Initial Inventory=5000
Part-II Demand (nothing is produced)
Production 8000 10000
5000 625000 625000
Prod 12000
Demand Profits
8000 0.11 420000
10000 0.11 630000
12000 0.28 840000
14000 0.22 840000
16000 0.18 840000
18000 0.1 840000
 Fixed Production Cost 100000
Variable Production Cost 80 P>D -80000
Selling Price 125 P<D -100000
Salvage Value 20

Prod 9000
Demand Profit
8000 0.11 200000 22000
10000 0.11 305000 33550
12000 0.28 305000 85400
14000 0.22 305000 67100
16000 0.18 305000 54900
18000 0.1 305000 30500
1 293450
Profit is either 200000with 11% or 305000 with 89% proby.

Profit
450000
400000 410685.6

350000 359900
300000 294500
250000 260000 Profit

200000
150000
100000
75500
50000
0
8000 10000 12000 14000 16000 18000 20000

(nothing is produced) Initial Inventory=10000

12000 14000 16000 18000 Production 8000 10000
625000 625000 625000 625000 10000 1040000 1250000
 Demand Profits
46200 8000 0.11 1040000
69300 10000 0.11 1250000
235200 12000 0.28 1250000
184800 14000 0.22 1250000
151200 16000 0.18 1250000
84000 18000 0.1 1250000
770700 370700
Profit
4500
Profit

75500

18000 20000

12000 14000 16000 18000

1250000 1250000 1250000 1250000
 114400
137500
350000
275000
225000
125000
1226900
 Inventory Problem

Proby. demand Exp Demand

11 8000 880
11 10000 1100
28 12000 3360
22 14000 3080
18 16000 2880
10 18000 1800
13100 Avg. demand

Fixed Production Cost 100000

Variable Production Cost 80
Selling Price 125
Salvage Value 20

Demand
Production 8000 10000 12000 14000
8000 260000 260000 260000 260000
10000 140000 350000 350000 350000
12000 20000 230000 440000 440000
14000 -100000 110000 320000 530000
16000 -220000 -10000 200000 410000
18000 -340000 -130000 80000 290000
20000 -460000 -250000 -40000 170000
Prod 12000
Demand Proby Profits Exp profit
8000 0.11 20000 2200
10000 0.11 230000 25300
 12000 0.28 440000 123200
14000 0.22 440000 96800
16000 0.18 440000 79200
18000 0.1 440000 44000
370700

Prod 16000
Demand Profits
8000 0.11 -220000 -24200
10000 0.11 -10000 -1100
12000 0.28 200000 56000
14000 0.22 410000 90200
16000 0.18 620000 111600
18000 0.1 620000 62000
294500

Prod Profit
8000 260000
10000 359900
12000 410685.6
16000 294500
20000 75500

Profi
450000
400000 410685.6

350000 359900
300000
250000 260000
200000
150000
100000
50000
0
8000 10000 12000 14000 1

Part-II Demand (nothing is produced)

Production 8000 10000 12000 14000
5000 625000 650000 225000 225000
 Prod 5000
Demand Profits
8000 0.11 225000 24750
10000 0.11 225000 24750
12000 0.28 225000 63000
14000 0.22 225000 49500
16000 0.18 225000 40500
18000 0.1 225000 22500
225000

Demand (production taking place)

Demand
Production 8000 10000 12000 14000
6000 570000 570000 570000 570000
7000 615000 615000 615000 615000
8000 660000 660000 660000 660000
9000 600000 705000 705000 705000
10000 540000 750000 750000 750000
11000 480000 690000 795000 795000
12000 420000 630000 840000 840000

Prod 7000
Demand Profits
8000 0.11 480000 52800
10000 0.11 690000 75900
12000 0.28 795000 222600
14000 0.22 795000 174900
16000 0.18 795000 143100
18000 0.1 795000 79500
748800
 30

25

20

15 Proby.

10

0
8000 10000 12000 14000 16000 18000

P>D 280000 Demand

P<D 260000 Production 8000 10000 12000 14000 16000
9000 200000 305000 305000 305000 305000
10000 140000 350000 350000 350000 350000
12000 20000 230000 440000 440000 440000
16000 18000 14000 -100000 110000 320000 530000 530000
260000 260000 16000 -220000 -10000 200000 410000 620000
350000 350000 18000 -340000 -130000 80000 290000 500000
440000 440000 20000 -460000 -250000 -40000 170000 380000
530000 530000
620000 620000
500000 710000
380000 590000
Prod 10000 Prod 9000
Demand Profit Demand Profit
8000 0.11 140000 15400 8000 0.11 200000
10000 0.11 450000 49500 10000 0.11 305000
 12000 0.28 350000 98000 12000 0.28 305000
14000 0.22 450000 99000 14000 0.22 305000
16000 0.18 350000 63000 16000 0.18 305000
18000 0.1 350000 35000 18000 0.1 305000
1 359900 1

Profit is either 200000with 11% or 3050

Prod 20000
Bin Demand Profits
-300000 8000 0.11 -460000 -50600
-200000 10000 0.11 -250000 -27500
-100000 12000 0.28 -40000 -11200
0 14000 0.22 170000 37400
100000 16000 0.18 380000 68400
300000 18000 0.1 590000 59000
75500

Profit
410685.6
359900

294500
00 Profit

75500

10000 12000 14000 16000 18000 20000

16000 18000
225000 225000
 Inven 5000

16000 18000
570000 570000
615000 615000
660000 660000
705000 705000
750000 750000 units Profit
795000 795000 6000 570000
840000 840000 7000 259000

Prod 12000
Demand Profits
8000 0.11 420000 46200
10000 0.11 630000 69300
12000 0.28 840000 235200
14000 0.22 840000 184800
16000 0.18 840000 151200
18000 0.1 840000 84000
770700
Proby.

18000
305000
350000
440000
530000
620000
710000
590000

22000
33550
 85400
67100
54900
30500
293450

ther 200000with 11% or 305000 with 89% proby.

 16000 9000
Demand Profits Profit Cum Proby Proby
8000 -220000 200000 0.11 0.11
10000 -10000 305000 0.22 0.11
12000 200000 305000 0.5 0.28
14000 410000 305000 0.72 0.22
16000 620000 305000 0.9 0.18
18000 620000 305000 1 0.1