A retailer has two merchandizers, sue and bob, who are responsible for setting order quantities for the products they manage. For all of their products, the critical ratio is 0. 7 and the coefficient of variation of their demand forecasts is 0. 35. At the end of the season, sue is proud to report that she has sold the entire inventory she purchased. Bob, on the other hand, sold only about a third of his products. Who is more likely to be choosing quantities that maximize expected profit?.

Question

07-11-2022
Business

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A retailer has two merchandizers, sue and bob, who are responsible for setting order quantities for the products they manage. For all of their products, the critical ratio is 0. 7 and the coefficient of variation of their demand forecasts is 0. 35. At the end of the season, sue is proud to report that she has sold the entire inventory she purchased. Bob, on the other hand, sold only about a third of his products. Who is more likely to be choosing quantities that maximize expected profit?.

Sagot :

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