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Suppose that products A and B share the same production capacity. Both products have the same underage cost of $4 and overage cost of $1.
Suppose that products A and B share the same production capacity. Both products have the same underage cost of $4 and overage cost of $1. Product A has a demand mean of 100 and standard deviation of 10. Product B has a demand mean of 300 and standard deviation of 10. Assume the current capacity is 400. If the capacity is increased to 404, what is the optimal allocation of the additional 4 units of capacity between products A and B? Group of answer choices 0 units for product A and 4 units for product B 1 units for product A and 3 units for product B 2 units for product A and 2 units for product B 3 units for product A and 1 units for product B
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