-bookstore selis a Dartucular book of tax laws tor Rs.100.It ourchases the book tor Rs.80 per copy.

Since some of the

lax laws change every year, the copies unsold at the end of a year become outdated and can be disposed oft for Rs.30
each. According to past experience, the annual demand for this book is between 18 and 23 copies.

Assuming that the order for this book can be placed only once during the year, the problem before store's manager is
todecide how many copies of the book should be purchased for the next year.

E1,D demand in units for the book (Event)

Q quantity decided to be purchased (Action)

P profit
When, D 2 Q then P 1000-800

P 200
When, D< Qthen P =100D 30(Q-D) - 800

P 100D+300-30D-80Q
P 70D-500

A18 A 19 A 20 A-21 As-22 A-23

E,=18 20Q 20x18 70D 50Q= 7OD 500-= 70D 500-= 70D 50Q= 70D-50Q=
(70x18 ) -
360 (70x18) -
(70x18) (70x18)- (70x18)-
(50x19) 310 (50x20) =260 (50x21) = 210 (50x22) = 160 (50x23) = 110

E,=19 200 20x18 20Q 20x19 70D S0Q= 70D 50Q= 70D-50Q= 70D 50Q=
380 (70x19) -
360 (70x19)- (70x19) (70x19)
(S0x20) =330 (50x21) = 280 (S0x22) = 230 (5Ox23) = 180

E-20 20Q 20xl8 20Q 20x19 200 20x20 70D 50Q: 70D 50Q= 70D 50Q=
360 380 =400 (70x20) -
(70x20) (70x20)-
(50x21) = 350 (50x22) = 300 (S0x23) 250

E=21 200= 20x18 20Q 20x19 20Q 20x20 200 20x21 70D 50Q= 70D 50Q:
(70x21) -
= 360 380 =400 420 (70x21)
(50x22) = 370 (50x23) = 320

20Q 20x18 20Q 20x19 200 20x20 200 20x21 200 20x22 70D 50Q=
E-22 360 = 380 =400 420 440 (70x22) -

(50x23) = 390

20Q 20x18 20Q 20x19 20Q 20x20 200 20x21 200 20x22 200 20x23
E=23 =
360 380 =400 = 420 =440 =460

A18 A-70 A-23

50 100 150 200 250

20 O 50 100 150 200

E,=20 40 20 O 50 100 1 50

E-21 60 40 20 100

E-22 80 60 40 20 50

E-23 100 80 60 40 20