Albert is planning on selling Holiday fruitcakes through a website and having a third partyfulfillment company handle the shipping and warehousing for him. He estimates that he willprofit $50 for each unit that he sales. The problem is he must send all of his fruitcakes to thefulfillment company ahead of the holiday season and following the season any remainingfruitcakes will be donated to charity. He estimates that unsold fruitcakes will cost him $30 intotal for all expenses. Based on last years sales he expects demand to be 411 fruitcakes witha standard deviation of 23 fruitcakes. If he behaves optimally how many fruitcakes will hesend to the fulfillment company? Round to the nearest whole number.

Answered: Albert is planning on selling Holiday…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section11.4: Marketing Models

Problem 30P: Seas Beginning sells clothing by mail order. An important question is when to strike a customer from...

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