2.28 A foundry produces castings to order. An order for 20 special castings has been re-ceived. Since the casting process is highly variable, not all castings produced aregood. The cost of producing each casting is $550; the additional cost of finishing agood casting is $125. If a casting is not good, it is recycled at a value of $75; excessgood castings are not finished but are recycled at a value of $75. The customer hasagreed to accept 15, 16, 17, 18, 19, or 20 castings at a price of $1250 each. If fewerthan 15 good castings are produced, none will be purchased by the customer. Prob-ability distributions for the number of good castings produced in a batch of varyingsizes are given below. How many castings should be scheduled in order to maximizeexpected profit?#GoodCastings56789101112131415161718192021222324252627282930792 PRODUCT, PROCESS, AND SCHEDULE DESIGNNumber of Castings Scheduled15 16170.05 0.00 0.00 0.00 0.00 0.000.05 0.05 0.00 0.00 0.00 0.000.05 0.05 0.05 0.00 0.00 0.000.05 0.05 0.05 0.05 0.00 0.000.05 0.05 0.05 0.05 0.05 0.000.05 0.05 0.05 0.05 0.05 0.050.10 0.05 0.05 0.05 0.050.050.0522 23 24 25 26 27 28 29 300.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.10 0.10 0.05 0.05 0.050.05 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.15 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.000.15 0.15 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.00 0.00 0.00 0.00 0.00 0.000.20 0.15 0.15 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.00 0.00 0.00 0.00 0.000.00 0.20 0.15 0.15 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.00 0.00 0.00 0.000.00 0.00 0.20 0.15 0.15 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.00 0.00 0.000.00 0.00 0.00 0.20 0.15 0.15 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.00 0.000.00 0.00 0.00 0.20 0.20 0.15 0.15 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.000.00 0.00 0.00 0.00 0.00 0.00 0.15 0.15 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.050.00 0.00 0.00 0.00 0.00 0.00 0.20 0.15 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.050.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.15 0.15 0.10 0.10 0.05 0.05 0.05 0.050.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.15 0.15 0.10 0.10 0.05 0.05 0.050.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.15 0.15 0.10 0.10 0.10 0.05 0.050.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.15 0.15 0.10 0.10 0.050.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.15 0.15 0.10 0.100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.15 0.15 0.100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.15 0.150.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.150.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.2018 19 20 21

x = the number of good units producedp(x) =probability of producing x good unitsQ = quantity of…

Answered: 2.28 A foundry produces castings to…

Practical Management Science

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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