Palmer Jam Company is a small manufacturer of sev-eral different jam products. One product is an organic

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Palmer Jam Company is a small manufacturer of sev-eral different jam products. One product is an organic jam that has no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture each month. The probability that demand will be 6 cases is .1, for 7 cases it is .3, for 8 cases it is .5, and for 9 cases it is .1. The cost of every case is $ 45, and the price Susan gets for each case is $ 95. Unfortunately, any cases not sold by the end of the month are of no value as a result of spoilage. How many cases should Susan manufacture each month?

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Operations Management

ISBN: 978-0133408010

11th edition

Authors: Jay Heizer, Barry Render

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