Expansion Strategy And Establishing A Re-Order Poi

Expansion Strategy and Establishing a Re-Order PointNameCourseTutor’s NameDateCase 1: Bell Computer CompanyThe expected profit from Medium-scale expansion is $145,000 and the expected profit from Large-scale expansion is $140,000. The Medium-Scale Expansion has a higher profit and therefore should be chosen because it is in line with profit maximisation objectives.The expected profit for the Medium-Scale Expansion alternative is $145,000 with a standard deviation of $52,200. The expected profit for Large-Scale Expansion alternative is $140,000 with a standard deviation of $111,350. The coefficient of standard deviation for Medium-Scale Expansion is $52,200 divided by $145,000 = 36% and the coefficient of standard deviation for Large-Scale Expansion is $111,350 divided by $140,000 = 80% The higher the coefficient of standard deviation the higher the risk, therefore the Medium-Scale Expansionwith a lower coefficient of standard deviation is preferred for the objective of minimizing the risk or uncertainty (Tanner & Youssef-Morgan, 2013).Case 2: Kyle Bits and BytesKyle Bits and Bytes, retailers of computing products,can use statistical analysis to minimize saleslost through stock outs.Kyle Bits and Bytes want the probability of stock out for its HPprinters to be no more than 6%