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Suppose the annual demand is normally distributed with mean 5 0 , 0 0 0 units and standard deviation of 1 , 0 0 0
Suppose the annual demand is normally distributed with mean units and standard deviation of units. The company receives an average profit margin of $ per unit. To account for loss of goodwill, lets assume that a lost sale has a penalty cost of $ What is the optimal capacity that a manufacturing company should have for this product if a marginal unit of capacity costs $ Assume that the capacity is going to be used for ever. Group of answer choices
Suppose the annual demand is normally distributed with mean units and standard deviation of units. The company receives an average profit margin of $ per unit. To account for loss of goodwill, lets assume that a lost sale has a penalty cost of $ What is the optimal capacity that a manufacturing company should have for this product if a marginal unit of capacity costs $ Assume that the capacity is going to be used for ever.
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