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Demand = 420,000 feet Std Dev = ([(x - u) 2 ]/N) 1/2 = ?? feet Profit = $0.25 per foot FSC Shortage Profit =
Demand = | 420,000 | feet |
Std Dev = ([(x - u)2]/N)1/2 = | ?? | feet |
Profit = | $0.25 | per foot |
FSC Shortage Profit = | $2 | per foot |
Total Marginal Benefit, Cu = | ?? | |
Initial Cost = | $4 | per foot |
Cost to Purchase Lumber = | $3.40 | per foot |
Total Marginal Cost, Co = | ?? | |
Optimal Service Level = | ?? | |
Optimal Order Size = | ?? | feet |
Divide by 12 builders = | ?? | per builder |
Suppose Nice Lumber will stock the FSC certified lumber for 12 green builders. For each of these builders, demand is normally distributed with a mean of 35,000 board feet and a standard deviation of 17,000 board feet, and each builders demand is independent of other builders demand.
How many board-feet of FSC certified lumber should Nice Lumber purchase per
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