please solve within 30 minutes. 10.A manufacturer of lawn care equipment has introduced a new product. The anticipated demand is normally distributedwith a mean of u = 100 and a standard deviation of = 50. Each unit costs $75 to manufacture and the introductoryprice is to be $125 to achieve this level of sales. Any unsold units at the end of the season are unlikely to be veryvaluable and will be disposed of in a fire sale for $25 each. It costs $10 to hold a unit in inventory for the entire season.3. What is the optimal cycle service level?OA) 0.39OB) 0.40OC) 0.43D) 0.45

Optimal service level is a service level which is calculated by following formula Optimal service…

Answered: 10. A manufacturer of lawn care…

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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Dan’s Independent Book Store is trying to decide on how many copies of a book to purchase at the start of the upcoming selling season. The book retails for $28.00. The publisher sells the book to Dan at $20.00. Dan can dispose of all of the unsold copies of the book at 50% off the retail price, at the end of the season. Dan estimates that demand for this book during the season is Normal with a mean of 1000 and a standard deviation of 250. Question 1: What is the quantity that Dan should order to maximize his expected profit?
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