Seas Beginning sells clothing by mail order. Animportant question is when to strike a customer fromthe company’s mailing list. At present, the companystrikes a customer from its mailing list if a customerfails to order from six consecutive catalogs. Thecompany wants to know whether striking a customerfrom its list after a customer fails to order from fourconsecutive catalogs results in a higher profit percustomer. The following data are available:■ If a customer placed an order the last time shereceived a catalog, then there is a 20% chance shewill order from the next catalog.■ If a customer last placed an order one catalog ago,there is a 16% chance she will order from the nextcatalog she receives.■ If a customer last placed an order two catalogs ago,there is a 12% chance she will order from the nextcatalog she receives.■ If a customer last placed an order three catalogsago, there is an 8% chance she will order from thenext catalog she receives.■ If a customer last placed an order four catalogsago, there is a 4% chance she will order from thenext catalog she receives.■ If a customer last placed an order five catalogs ago,there is a 2% chance she will order from the nextcatalog she receives.It costs $2 to send a catalog, and the average profitper order is $30. Assume a customer has just placedan order. To maximize expected profit per customer,would Seas Beginning make more money cancelingsuch a customer after six nonorders or four nonorders?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Seas Beginning sells clothing by mail order. An
important question is when to strike a customer from
the company’s mailing list. At present, the company
strikes a customer from its mailing list if a customer
fails to order from six consecutive catalogs. The
company wants to know whether striking a customer
from its list after a customer fails to order from four
consecutive catalogs results in a higher profit per
customer. The following data are available:
■ If a customer placed an order the last time she
received a catalog, then there is a 20% chance she
will order from the next catalog.
■ If a customer last placed an order one catalog ago,
there is a 16% chance she will order from the next
catalog she receives.
■ If a customer last placed an order two catalogs ago,
there is a 12% chance she will order from the next
catalog she receives.
■ If a customer last placed an order three catalogs
ago, there is an 8% chance she will order from the
next catalog she receives.
■ If a customer last placed an order four catalogs
ago, there is a 4% chance she will order from the
next catalog she receives.
■ If a customer last placed an order five catalogs ago,
there is a 2% chance she will order from the next
catalog she receives.
It costs $2 to send a catalog, and the average profit
per order is $30. Assume a customer has just placed
an order. To maximize expected profit per customer,
would Seas Beginning make more money canceling
such a customer after six nonorders or four nonorders?
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