Problem
Leah Sanchez is concerned that if she orders too few calendars, customers' disappointment in not finding a calendar might drive them to shop elsewhere, resulting in more of a loss over the long term than just the $9.00 of lost profit on the calendar. Modify the model in Figure 11.7 by adding a row that calculates unmet demand (number of calendars not sold, but could have been if a sufficient number were ordered). Assume Leah assigns $3.00 to each unmet-demand calendar as the additional opportunity cost due to future lost sales. For example, if Leah ordered 650 calendars and 700 are demanded, 50 calendars is the unmet demand and $150 is the additional opportunity cost. Incorporate this additional cost into your model. How many calendars would you recommend that Leah order based on this new model?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.