EXCEL ASSIGNMENTS, SUPPLY CHAIN MANAGEMENT

California State University, East Bay

School of Business and Economics

MGMT 364: Global Supply Chain Management

Homework 2

Due 11:59 PM Sun, March 14, 2021

Problem 1:

The manager at Sportmart, a sporting goods store, has to decide on the number of skis to purchase for the winter season. Based on past demand data and weather forecasts for the year, management has forecast demand follows the distribution showing in the data table below. Each pair of skis costs $100 and retail price is $250. Any unsold skis at the end of the season are disposed of for $85. How many skis should the manager order to maximize expected profits?

Demand	Probability
100	0.2
200	0.2
300	0.3
400	0.13
500	0.100
600	0.040
700	0.030

Problem 2:

See the next page.