A new type of photographic film has been developed. It is packaged in sets of five sheets,

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A new type of photographic film has been developed. It is packaged in sets of five sheets, where each sheet provides an instantaneous snapshot. Because this process is new, the manufacturer has attached an additional sheet to the package, so that the store may test one sheet before it sells the package of five. In promoting the film, the manufacturer offers to refund the entire purchase price of the film if one of the five is defective. This refund must be paid by the camera store, and the selling price has been fixed at $2 if this guarantee is to be valid. The camera store may sell the film for $1 if the preceding guarantee is replaced by one that pays $0.20 for each defective sheet. The cost of the film to the camera store is $0.40, and the film is not returnable. The store may choose any one of three actions:

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Introduction To Operations Research

ISBN: 9780072321692

7th Edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

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