Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to

Question:

Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many toproduce for an upcoming event. During the event itself, which lasts one day? Sally can sell T-shirts for $20 apiece. However, when theevent ends, any unsold T-shirts are sold for $4 apiece. It costs Sally $8 to make a specialty T-shirt. Using Sally's estimate of demand that follows, how many T-shirts should she produce for the upcoming event?

Demand Probability

300 ..........0.05

400 .......... 0.1

500 .......... 0.4

600 .......... 0.3

700 .......... 0.1

800 ..........0.05

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations and Supply Chain Management

ISBN: 978-0078024023

14th edition

Authors: F. Robert Jacobs, Richard Chase

Question Posted: