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An order for 10 custom-designed castings has been received. The casting process costs $1100 per unit scheduled. If a casting is not sold it has
An order for 10 custom-designed castings has been received. The casting process costs $1100 per unit scheduled. If a casting is not sold it has a recycle value of $300. The customer has indicated a willingness of to pay $2700 per casting for acceptable casting no more no less! If number of good casts is less than 10 then the customer does not accept For only one casting if we have the 5% chance probability of having defective How many casting should be scheduled for production in order to maximize profit?
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