Question: If you can please show the step by step process to solve this problem 3. (35 pts.) A start-up needs to determine the production capacity

If you can please show the step by step process

If you can please show the step by step process to solve this problem

3. (35 pts.) A start-up needs to determine the production capacity in pounds per month to deploy at a new lab. They want to match production to demand in each month, to avoid shortages and inventory accumulation. An option being considered: Any excess demand that cannot be met through the planned capacity will have to be met through overtime, at the differential cost of $100 per pound. The accounting department, however, estimates that under-utilized capacity implies an opportunity cost of $200 per pound. If monthly demand is expected to be normally distributed with a mean of 100,000 pounds and a standard deviation of 5,000 pounds, what is an optimal selection of the lab capacity, based on the above information

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