Make a Splash T-Shirts is planning to print and sell specially designed tee shirts for the upcoming
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of 12,000 shirts and a standard deviation of 2,500 shirts. The demand for the $20 price is expected to be normally distributed, with a mean of 5,000 shirts and a standard deviation of 1,000 shirts. Any shirts left over will be discarded. Because of the high setup costs, Make a Splash T-Shirts is planning on producing one run of 17,000 shirts. In your model use integers for all demands.
(a) Simulate N setups to calculate the average profit for this quantity of shirts.
(b) Make a Splash T-Shirts would like to evaluate producing 16,000,17,000,18,000,19,000, and 20,000 shirts. Which would you recommend? Why?
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Related Book For
Managerial Decision Modeling With Spreadsheets
ISBN: 9780136115830
3rd Edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
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