Inventory Management and Risk Pooling in the Supply Chain Part 2

[@kadrogo601]

Dr. Millar, I have a question. On 13:18, the formula show P(D, Q) = min(D, Q)*(r - c) + max(0, (Q - D))*s - FC. What I am wondering is min(D, Q)*(r - c). Mustn't it be D*r - Q*c since each of revenue and cost depends on Demand and Quantity, respectively? On 15:22, actually, your solution is just as what I wondered above.

[@TheFrancescfab]

hello prof millar, could you please explain in detail hot the average profit was computed as a function of production quantity

[@ayazkhanlodhi5941]

Dear Prof....where can I find the calculation videos you referred about?

[@ayazkhanlodhi5941]

Dear Prof. I think there is a mistake T slide at 15:58 where you mentioned probability of demand being 12000 is 27% but you mentioned profit $140000, which should be $350000. Kindly clarify

[@ayazkhanlodhi5941]

Hello prof millar, could you please explain in detail hot the average profit was computed as a function of production quantity