16.15. The Gilbert Air Conditioning Company is considering purchase of a special shipment of portable air conditioners
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16.15. The Gilbert Air Conditioning Company is considering purchase of a special shipment of portable air conditioners from Japan. Each unit will cost Gilbert $80 and be sold for $125. Gilbert does not want to carry over surplus air condi- tioners to the following year. Thus, all surplus units will be sold to a wholesaler who has agreed to take them for $50 per unit. Given the probability distribution for air conditioners shown below, recommend an order quantity and the antici- pated profit using expected value analysis:
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Service Management Operations Strategy Information Technology
ISBN: 9780071244404
5th Edition
Authors: James A Fitzsimmons
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