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1: Suppose the company has identified the following three possible demand scenarios: 1. If the capacity is set at 80,000 , how much of a
1: Suppose the company has identified the following three possible demand scenarios: 1. If the capacity is set at 80,000 , how much of a capacity cushion is here? What is the capacity utilization? 2. What is the probability of idle capacity if the capacity is 80,000 ? 3. If it costs $25 per units lost business and $50 to build a unit of capacity, how much capacity should be built to minimize total cost
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