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Total Bunnies Available 100,000
Discount margin 4.00$
High service margin 8.00$
High service mean 400,000
1 day LT SD 150,000
Optimal desired amount for high
service channel (Equation 16.4)
400,000
Amount for high service channel 100,000
Total Bunnies 100,000
Discount margin 4.00$
High service margin 8.00$
High service mean 400,000
1 day LT SD 150,000
Amount for high service =MIN(B3,NORMINV(1-(B4/B5),B7,B8))