Kitchen Trims is a manufacturer of cornice and pelmet trims for the kitchen manufacturer market. It has
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Kitchen Trims is a manufacturer of cornice and pelmet trims for the kitchen manufacturer market. It has production capacity of 1,500 units per day. Currently, the company sells production capacity for €12.00 per unit. At this price, all production capacity gets booked about one week in advance. Some customers have said that they would be willing to pay an additional €6 (€18 per unit) if Kitchen Trims had capacity available on the last day. About 10 days in advance, demand for the high-price segment is normally distributed, with a mean of 375 and a standard deviation of 100. How much production capacity should Kitchen Trims reserve for the last day?
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Related Book For
Supply Chain Management Strategy Planning And Operation
ISBN: 9781292257891
7th Global Edition
Authors: Sunil Chopra
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