Every summer Marianna offers a special convertible roof on the Sport Coupe model. The demand for the special roof every summer is 2200 cars with a standard deviation of 450. She must order all of the roofs from a supplier in a single order placed in January. Her supplier charges $750 for every roof ordered. Marianna sells the special roof for a $1500 premium on the Sports Coupe. Since Marianna has adopted a rapid product design process and completely redesigns the models every year she cannot carry over any remaining roofs to the next summer and has to sell them to an auto surplus store for $250 each.
Every summer Marianna offers a special convertible roof on the Sport Coupe model. The demand for the special roof every summer is 2200 cars with a standard deviation of 450. She must order all of the roofs from a supplier in a single order placed in January. Her supplier charges $750 for every roof ordered. Marianna sells the special roof for a $1500 premium on the Sports Coupe. Since Marianna has adopted a rapid product design process and completely redesigns the models every year she cannot carry over any remaining roofs to the next summer and has to sell them to an auto surplus store for $250 each.
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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Transcribed Image Text:Every summer Marianna offers a special convertible roof on the Sport Coupe model. The demand for the special roof
every summer is 2200 cars with a standard deviation of 450. She must order all of the roofs from a supplier in a single
order placed in January. Her supplier charges $750 for every roof ordered. Marianna sell the special roof for a $1500
premium on the Sports Coupe. Since Marianna has adopted a rapid product design process and completely redesigns
the models every year she cannot carry over any remaining roofs to the next summer and has to sell them to an auto
surplus store for $250 each.
What do the costs indicate she should set her service level at? (lgnore Goodwil)
O 60%
O 40%
O 80%
O 95%
O 73%
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