Amazon has to make a decision if they want a Christmas item for which demand can be high
Amazon has to make a decision if they want a Christmas item for which demand can be high, medium, or low. Amazon can purchase 1 shipment, 2 shipments, or 3 shipments of the item.
Profit projections in thousands are:
High Medium Low
Purchase 1 shipment 40 40 30
Purchase 2 shipments 60 60 10
Purchase 3 shipments 80 50 0
You have decided to ask the marketing department if they feel how probable the item will sell. The probability of selling being good is 60% and fair is 40%. If the probability is good for selling, then high demand will be 40%, medium demand will be 30%, and low demand will be 30%. Likewise if the probability is fair for selling, then high demand will be 20%, medium demand will be 30% and low demand will be 50%. You don’t have to ask the marketing department for advise, you could go by your last quarters report instead and high demand was 30%, medium demand was 40%, with low demand at 30%.
Make the decision tree and show all of your work. What will be your decision? Would you seek extra advice from the marketing department
10 years ago
Purchase the answer to view it

- rq_file19.docx
- RQfile18.docx