Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to
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Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many toproduce for an upcoming event. During the event itself, which lasts one day? Sally can sell T-shirts for $20 apiece. However, when theevent ends, any unsold T-shirts are sold for $4 apiece. It costs Sally $8 to make a specialty T-shirt. Using Sally's estimate of demand that follows, how many T-shirts should she produce for the upcoming event?
Demand Probability
300 ..........0.05
400 .......... 0.1
500 .......... 0.4
600 .......... 0.3
700 .......... 0.1
800 ..........0.05
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Related Book For
Operations And Supply Chain Management
ISBN: 287
14th Edition
Authors: F. Robert Jacobs, Richard Chase
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