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Please solve by hand using EMQ, All-Units-Discounting, or Single Period Inventory mehtods with all equations thought out. Hula-Hoop, Inc. (HHI) has designed a new toy
Please solve by hand using EMQ, All-Units-Discounting, or Single Period Inventory mehtods with all equations thought out.
Hula-Hoop, Inc. (HHI) has designed a new toy that they think will be a fad. However, they think that the fad will be so short that there will only be time for one production run before the fad has run its course. Market surveys have indicated that the total demand for the toy will be roughly 5,000 units. Experience with such surveys indicates that this estimate is approximately Normally distributed with a variance 2 1,000,000. This item costs $3.50 to produce, and can be sold to the distributors for $8.50. Units left over after the fad is finished, the units can be disposed of simply by tossing them in the trash If, by chance, HHI runs out of the new toy, there is no real loss. How many units should HHI produceStep by Step Solution
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