Question: Goop Inc. needs to order a raw material to make a special polymer. The demand for the polymer is forecasted to be normally distributed with
Goop Inc. needs to order a raw material to make a special polymer. The demand for the polymer is forecasted to be normally distributed with a mean of gallons and a standard deviation of gallons. Goop sells the polymer for $ per gallon. Goop purchases raw material for $ per gallon and Goop must spend $ per gallon to dispose of unused raw material due to government regulations. One gallon of raw material yields one gallon of polymer. If demand is more than Goop can make, then Goop sells only what they made, and the rest of demand is lost. Suppose Goop purchases gallons of raw material. How many gallons of demand on average would remain unfulfilled?
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