A publisher is printing calendars for the coming year. Demand for calendars is normally distributed, with a
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A publisher is printing calendars for the coming year. Demand for calendars is normally distributed, with a mean of 70,000 and a standard deviation of 25,000. The cost per calendar is $3, and they are sold for $10 each. All unsold calendars are recycled at the end of January.
a. How many calendars should the publisher have printed? What is the expected profit?
b. The printer has offered to discount the printing cost to $2.75 per calendar if the publisher orders at least 100,000. What should the publisher do?
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Related Book For
Supply Chain Management Strategy Planning And Operation
ISBN: 9781292257891
7th Global Edition
Authors: Sunil Chopra
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