Question: Please do the T - shirts Problem with a sales price of $ 1 6 and production cost of $ 1 2 . Unsold shirts

Please do the T-shirts Problem with a sales price of $16 and production cost of $12. Unsold shirts can be sold off at $7. The demand is given by N(mu =59, sigma =6).
Part a: 3 points
What is the under-stocking cost Cu?
Locally stored answer:
Part b: 3 points
What is the over-stocking cost Co?
Locally stored answer:
Part c: 3 points
What is the service level or critical fractile? (Please state a probability with 4 decimal places (and not a percentage).
Locally stored answer:
Part d: 3 points
What is the corresponding z-score?
Locally stored answer:
Part e: 3 points
What is the optimal order quantity? Please round to a whole number.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!