Question: A foundry has received an order for 2 0 custom - designed castings. The casting process costs $ 7 0 0 per unit scheduled. If

A foundry has received an order for 20 custom-designed castings. The casting
process costs $700 per unit scheduled. If a casting is good, then it is machined to
specifications at an added cost of $500 per unit. If a casting is not sold, it has a
recycle value of $300. The customer has indicated a willingness to pay $2000 per
casting for 20 acceptable castings; the customer has also agreed to pay $1500 each
for one or two additional castings. However, the customer is unwilling to purchase
fewer than 20 or more than 22 castings. Based on historical records, the following
probability distributions have been estimated. How many castings should be
scheduled for production to maximize expected profit? (Tabulate your calculations
into tables for parts 20 to 30)(Answers: 29)
 A foundry has received an order for 20 custom-designed castings. The

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