Question: A) In the previous problem, the manufacturer performs additional market research. Based on this research, they determine that they can increase the price from $125
A) In the previous problem, the manufacturer performs additional market research. Based on this research, they determine that they can increase the price from $125 to $150. Each unit still costs $75 to manufacture. They are able to reduce the standard deviation of the forecast from = 50 to = 30. At the same time, they have made an arrangement with an outlet store that will purchase unsold equipment for $50 each. What is the NEW optimal service level (Critical Fractile)? (Keep TWO decimal places)
B) In the previous problem, the manufacturer performs additional market research. Based on this research, they determine that they can increase the price from $125 to $150. Each unit still costs $75 to manufacture. They are able to reduce the standard deviation of the forecast from = 50 to = 30. At the same time, they have made an arrangement with an outlet store that will purchase unsold equipment for $50 each. What is the NEW optimal number of units that should be manufacturered? (Round to the closest integer)
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