10. A manufacturer of lawn care equipment has introduced a new product. The anticipated demand is normally distributed with a mean of u = 100 and a standard deviation of = 50. Each unit costs $75 to manufacture and the introductory price is to be $125 to achieve this level of sales. Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $25 each. It costs $10 to hold a unit in inventory for the entire season. 3. What is the optimal cycle service level? OA) 0.39 OB) 0.40 OC) 0.43 D) 0.45
10. A manufacturer of lawn care equipment has introduced a new product. The anticipated demand is normally distributed with a mean of u = 100 and a standard deviation of = 50. Each unit costs $75 to manufacture and the introductory price is to be $125 to achieve this level of sales. Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $25 each. It costs $10 to hold a unit in inventory for the entire season. 3. What is the optimal cycle service level? OA) 0.39 OB) 0.40 OC) 0.43 D) 0.45
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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