You are the production manager for Annie's Tricky Emporium, in charge of making exploding cigars. The forecasted demand

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answerhappygod
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You are the production manager for Annie's Tricky Emporium, in charge of making exploding cigars. The forecasted demand

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You are the production manager for Annie's Tricky Emporium, in
charge of making exploding cigars.
The forecasted demand for cigars for the next four days is 220,
150, 100, and 70. It costs 50¢ to make each cigar and you sell them
for $1.
a. What is the recommended production rate if a level strategy
is adopted with no back orders or stock outs? What is the ending
inventory for day 4 under this plan? At the end of this period all
the cigars have to be disposed of. What is your total revenue and
your profit?
b. What is the level production rate with no ending inventory in
month 4? Backorders cost you a 25¢ penalty in sales price
(essentially calculate as if you sold them on that same day at 75¢)
What is your total revenue and your profit?
Please show all work. Thank you!
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