Question
Please explain and show the math as to why the two answers below are wrong. One month prior to flu season, GammaFlu must decide how
Please explain and show the math as to why the two answers below are wrong.
One month prior to flu season, GammaFlu must decide how many doses of this year's flu vaccine to order from its contract manufacturer. GammaFlu sells the vaccines for $61 per unit. Any unsold vaccines at the end of flu season can be sold in a secondary market for $19. It costs $2 to hold a unit in inventory through the selling season. Demand is estimated to be normally distributed with a mean of 44,000 units and a standard deviation of 7,000 units. GammaFlu's contract manufacturer charges $30.2 per unit ordered.
Compute the Optimal Quantity and the Optimal expected profit.
One month prior to flu season, GammaFlu must decide how many doses of this year's flu vaccine to order from its contract manufacturer. GammaFlu sells the vaccines for $61 per unit. Any unsold vaccines at the end of flu season can be sold in a secondary market for $19. It costs $2 to hold a unit in inventory through the selling season. Demand is estimated to be normally distributed with a mean of 44,000 units and a standard deviation of 7,000 units. GammaFlu's contract manufacturer charges $30.2 per unit ordered. Compute the optimal order quantity for GammaFlu. - Carry your calculations to at least 3 decimal places. - Enter your final answer rounded to 1 decimal place. Answer: The correct answer is: 47670.8 One month prior to flu season, GammaFlu must decide how many doses of this year's flu vaccine to order from its contract manufacturer. GammaFlu sells the vaccines for $61 per unit. Any unsold vaccines at the end of flu season can be sold in a secondary market for $19. It costs $2 to hold a unit in inventory through the selling season. Demand is estimated to be normally distributed with a mean of 44,000 units and a standard deviation of 7,000 units. GammaFlu's contract manufacturer charges $30.2 per unit ordered. Compute the optimal expected profit for GammaFlu associated with the optimal order quantity. - Carry your calculations to at least 3 decimal places. - Enter your final answer rounded to 1 decimal place. Answer: The correct answer is: 1248110.6
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