Lear corporation, manufacturer of vehicle seats, is defining the quantity to be produced in the last production run of an older model to be phased out. If there are seats left over at the end of the year, a company charges you $ 640 per unit to handle and dispose of it. The Cost of the seat is $ 1500 / unit and the sale price is $ 2720 / unit.

If a seat is required and is not has available, the cost of the seat increases to $ 2400, since a vehicle cannot be left unrepaired. The Monthly demand follows a Poisson distribution with a mean of 40.