Could you please elaborate a bit more why did you consider 2900 x .2 when you find the EV of 300 units in contact and 400 units of normal selling? Isn't it (2000 x .2)+900 (300 x 3) because only the normal demand has of 0.2 probability on each month, but the contact value is fixed?
This was the first step on question (b) (i).
Appreciate your help. Thank you
C
Charuka kumarasiri.·
A great lecture sir, really appreciate the slow flow of explanations.
Could you please elaborate a bit more why did you consider 2900 x .2 when you find the EV of 300 units in contact and 400 units of normal selling? Isn't it (2000 x .2)+900 (300 x 3) because only the normal demand has of 0.2 probability on each month, but the contact value is fixed?
This was the first step on question (b) (i).
Appreciate your help. Thank you