Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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A company's production manager is trying to determine the quantity of sensors to produce next year.
The unit cost of producing the sensor is $22 and it will be sold at $34. Sensors that are not purchased
can be sold on the secondary market for a 30% discount. The manager analyzing historical data to find
that the number of sensors sold is normally distributed with a mean of 600 and standard deviation of
90. If the critical fractile is 54%, what is the optimal number of sensors to be produced next year?
NOTE: No information is needed from other reports.
A. 710
B.
C. 609
D.
601
E.
610
621
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Transcribed Image Text:A company's production manager is trying to determine the quantity of sensors to produce next year. The unit cost of producing the sensor is $22 and it will be sold at $34. Sensors that are not purchased can be sold on the secondary market for a 30% discount. The manager analyzing historical data to find that the number of sensors sold is normally distributed with a mean of 600 and standard deviation of 90. If the critical fractile is 54%, what is the optimal number of sensors to be produced next year? NOTE: No information is needed from other reports. A. 710 B. C. 609 D. 601 E. 610 621
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