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From Table 3, it can be observed that for promotional effort (left( rho right)) increases, optimal selling price (left( {p^ right)), optimal preservation technology cost (left( {xi^ right)), optimal total profit per unit (left( {varPi_{A}^ right)) and optimal order quantity (left( {Q^ right)) increase, while optimal shortage period ((t_{1}^)) and optimal inventory period ((t_{2}^)) decrease.
The results reveal that as a increases, optimal shortage period (left( {t_{1}^ right),) optimal selling price (left( {p^ right)) and optimal preservation technology cost (left( {xi^ right)) decreases whereas optimal inventory period (left( {t_{2}^ right)), optimal total profit per unit (left( {varPi_{rm A}^ right)) and optimal ordering quantity (left( {Q^ right)) increase which is quite rational.
On the other hand, as the value of scaling parameter (left( K right)) increases, optimal inventory period (left( {t_{2}^ right)) and optimal selling price (left( {p^ right)) increase, while optimal shortage period (left( {t_{1}^ right)), optimal preservation technology cost (left( {xi^ right)), optimal total profit per unit (left( {varPi_{A}^ right)), and optimal ordering quantity ((Q^)) decrease.
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If production doubles, rent is now allocated at only $0.05 per unit, leaving more room for profit on each sale.
His unit left last November.
My unit leaves in July".
A We have two units left.
Prices per unit will range from $500,000 to $2 million.
Further notation is as follows: c Production cost (per unit input) w Wholesale price (per unit) p Retail price (per unit) (f_{S} left( cdot right)) pdf of standard normal distribution (F_{S} left( cdot right)) cdf of standard normal distribution (f_{Y(Q)} left( cdot right)) pdf of random variable (Y(Q)) (yield) (F_{Y(Q)} left( cdot right)) cdf of random variable (Y(Q)) (yield).
9) Calculate the per unit economics.
Production cost (per unit input).
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