Wholemark is an Internet order business that sells one popular New Years greeting card once a year.
Question:
Wholemark is an Internet order business that sells one popular New Year’s greeting card once a year. The cost of the paper on which the card is printed is $0.05 per card, and the cost of printing is $0.15 per card. The company receives $2.15 per card sold. Because the cards have the current year printed on them, unsold cards have no salvage value. Its customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena.
Based on past data, the number of customers from each of the four regions is normally distributed with a mean of 2,000 and a standard deviation of 500. (Assume these four are independent.) What is the optimal production quantity for the card?
1002W
Step by Step Answer:
ISE Operations And Supply Chain Management
ISBN: 9781260575941
16th International Edition
Authors: F. Robert Jacobs, Richard B. Chase