Expanstion Strategy and Establishing Re Order Points

Expanstion Strategy and Establishing Re Order Points

Case 1: Bell Computer Company
·         Compute the expected value for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of maximizing the expected profit?
Case 2: Kyle Bits and Bytes
What should be the re-order point? How many HP laser printers should he have in stock when he re-orders from the manufacturer?