Wholemark is an Internet order business that sells one popular New Years greeting card once a year.

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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?

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ISE Operations And Supply Chain Management

ISBN: 9781260575941

16th International Edition

Authors: F. Robert Jacobs, Richard B. Chase

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