The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80, and it will be sold for $125. Gilbert does not want to carry surplus air conditioners over until the following year. Thus, all surplus air conditioners will be sold to a wholesaler for $50 per unit. Assume that the air conditioner demand follows a normal probability distribution with μ 5 20 and σ 5 8. a. What is the recommended order quantity? b. What is the probability that Gilbert will sell all units it orders?
The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80, and it will be sold for $125. Gilbert does not want to carry surplus air conditioners over until the following year. Thus, all surplus air conditioners will be sold to a wholesaler for $50 per unit. Assume that the air conditioner demand follows a normal probability distribution with μ 5 20 and σ 5 8. a. What is the recommended order quantity? b. What is the probability that Gilbert will sell all units it orders?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section: Chapter Questions
Problem 36P: Dilberts Department Store is trying to determine how many Hanson T-shirts to order. Currently the...
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The Gilbert Air-Conditioning Company is considering the purchase of a special shipment
of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80, and it
will be sold for $125. Gilbert does not want to carry surplus air conditioners over until the
following year. Thus, all surplus air conditioners will be sold to a wholesaler for $50 per
unit. Assume that the air conditioner demand follows a
μ 5 20 and σ 5 8.
a. What is the recommended order quantity?
b. What is the probability that Gilbert will sell all units it orders?
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