(Solved) : Revisit Lucy Lindner Bookstore Problem Hw1 Suppose Know Demand Shirts Season Always Varies Q44072184 . . .
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Revisit the Lucy Lindner bookstore problem from HW1. Suppose weknow that the demand for shirts during the season always variesbetween 400 to 600 shirts. How does the average total profit varyas the order quantity varies from 400 to 600 shirts? Create aJupyter Notebook using Python code to complete the appropriateanalysis needed to answer this question. Generate a chart/graph ofyour results and include a text markdown cell in the notebook todocument your verbal description of the results.
here is Lucy Lindner bookstore solution from HW1
Lucy Lindner’s BookstoreSales Price$75Unit Cost$50Salvage Price$15Order Quantity600shirtsDemand525shirtsShirts Sold525shirtsSales Revenue$39,375Unsold Shirts75shirtsSalvage Revenue$1,125Total Revenue$40,500Total Cost$30,000Profit$10,500
Lucy Lindner bookstore from question 1:
2. Lucy Lindner owns a small campus bookstore that also sellssportswear. In February, she must place an order with Nike for anew UC football shirt for the coming season. The long lead time isrequired for the contract manufacturers in Asia to order thenecessary materials and to begin production in April. The shirtswill be delivered to Lucy in early August just in time for the newseason. Nike will charge Lucy $50 for each shirt she orders, andshe will sell each shirt for $75 during the season. There will notbe another opportunity for Lucy to order any more shirts if sheruns out. At the end of the season Lucy will sell all the shirtsthat are left at a price of $15. Obviously, Lucy doesn’t knowexactly what the demand for these shirts will be, but during thepast few years she has sold an average of 500 shirts each seasonthat are similar to the new shirt. Use an order quantity of 600 anda demand of 525 for your base case values. Construct a spreadsheetmodel to analyze Lucy’s decision.
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