In the Walton Bookstore example with a discrete demand distribution, explain why an order quantity other than one of the possible demands cannot maximize the expected profit. (Hint: Consider an order of 190 calendars, for example. If this maximizes expected profit, then it must yield a higher expected profit than an order of 150 or 100. But then an order of 200 calendars must also yield a larger expected profit than 190 calendars. Why?)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here