The case prompt says with 50% shortage in cookie inventory levels, they are supplying 600 cookies less than what the market demands. Based on this information how will you calculate what the actual demand is and what they are currently supplying? Please elaborate on the math
answer: demand = 1800, current supply = 1200
If 'x' is the demand:
x-600 = x/2
x= 1200
Demand = 1200
Supply = 600
I think this should be the answer. (How come demand is 1800?, when it's mentioned it has to be both 600 less than actual supply and 50% of the inventory).
Hi,
Have you re-written the case? This isn't correct English. Can you please re-write the math prompt exactly as it's written?
If there's a 600 unit shortage, and that represents a 50% shortage, then the demand is 1,200.
600/1,200 = 50%...this is a very basic breakeven. I highly encourage you to practice this a lot and work on more advanced breakevens as well!
What exactly is the question? Happy to help if you clarify.
