This is an inventory decision management tool for uncertain demand. I built this program in addition to my final semester paper for Games of Chance and Games of Strategy at Harvard Business School.
Scenario: You are in the commodities business and you are about to submit your order for the latest/stylish commodity. If the commodity/unit costs $14, for example, and you are planning to sell it for $58. At this price and with a demand forecast, how many units, n, should you produce to maximize expected profit?
Risks: Once the number of units are given, what if you want to produce n+1 units? There is a potential loss, potential gain, and a probability of failure involved when deciding to produce n+1 units. The program makes an assessment of the risk from producing n+1 units and determines a recommendation if producing n+1 units prove favorable.