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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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