5 Motorama TV estimates the annual demand for its TVs is (and will be in the future)...
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5 Motorama TV estimates the annual demand for its TVs is (and will be in the future) normally distributed, with a mean of 6,000 and standard deviation of 2,000. Motorama must determine how much production capacity it should have. The cost of building enough production capacity to make 1,000 sets per year is $1,000,000 (equivalent in present value terms to a cost of $100,000 per year forever). Exclusive of the cost of building capacity, each set sold contributes
$250 to profits. How much production capacity should Motorama have?
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Related Book For
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston
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