CWD Inc needs to decide how many of the new Samsung phone to

CWD Inc needs to decide how many of the new Samsung phone to purchase for the new store. The company has assumed that demand will be 60,110,180, or 220 Samsung next month and they need to decide whether to order 60,110,180 or 220 Samsung for this period. Each Samsung cost CWD Inc $1250 and can be sold for $2000. Technology Inc can sell any unsold Samsung back to their supplier for $250.00 Complete the Payoff table

Solution

The pay off table is shown above

It is calculated as quantity demanded * profit 750- excess quantity ordered *1000

Amount ordered demanded
60 110 180 220
60 45000 45000 45000 45000
110 -5000 82500 82500 82500
180 -12000 -7000 135000 135000
220 -29000 -27500 95000 162000
 CWD Inc needs to decide how many of the new Samsung phone to purchase for the new store. The company has assumed that demand will be 60,110,180, or 220 Samsung

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