37. A large national producer of canned foods plans to purchase 100 combines that are to be customized for its needs. One of the parts used in the combine is a replaceable blade for harvesting corn. Spare blades can be purchased at the time the order is placed for S100 each, but will cost $1,000 each if purchased at a later time because a special pro- duction run will be required. It is estimated that the number of replacement blades required by a combine over its useful lifetime can be closely approximated by a normal distribution with mean 18 and standard deviation 5.2. The combine maker agrees to buy back unused blades for $20 each. How many spare blades should the company purchase with the combines?
37. A large national producer of canned foods plans to purchase 100 combines that are to be customized for its needs. One of the parts used in the combine is a replaceable blade for harvesting corn. Spare blades can be purchased at the time the order is placed for S100 each, but will cost $1,000 each if purchased at a later time because a special pro- duction run will be required. It is estimated that the number of replacement blades required by a combine over its useful lifetime can be closely approximated by a normal distribution with mean 18 and standard deviation 5.2. The combine maker agrees to buy back unused blades for $20 each. How many spare blades should the company purchase with the combines?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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