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Marks and Spencer (M&S) is a major clothing apparel retailer in the UK. They are planning their production quantities for their summer line in 2024.
Marks and Spencer (M&S) is a major clothing apparel retailer in the UK. They are planning their production quantities for their summer line in 2024. As part of the spring collection, they will be offering a new line of swimsuits. The average demand is 15,000 and the standard deviation is 6,000. M&S outsources the production of their swimwear to a facility in China that charges M&S $20 per piece (these are one-piece swimsuits) inclusive of shipping. Due to long lead-times and short season, they place only one order with this supplier well before the season starts. M&S believes that they can sell these in the UK for $35. If there are swimsuits left over at the end of the season, they can be sold for $5. What is the overage cost
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