Question
Big Easy Festivities Inc. needs to decide how many Mardi Gras 2018 masks to produce for the upcoming Mardi Gras. Because each store buys masks
Big Easy Festivities Inc. needs to decide how many Mardi Gras 2018 masks to produce for the upcoming Mardi Gras. Because each store buys masks from Big Easy Festivities as a package of 1000 and there are 3 potentially interested stores, demand will be 0, 1000, 2000, or 3000. But demand is uncertain at the time of production. Big Easy Festivities thus needs to decide whether to produce 0, 1000, 2000, or 3000 masks without knowing the demand. Each mask costs Big Easy Festivities $3 and is sold for $8 to the stores. Any mask that Big Easy Festivities does not sell will be donated.
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