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Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide ho
Posted: Wed Apr 27, 2022 2:18 pm
by answerhappygod
- Sally S Silk Screening Produces Specialty T Shirts That Are Primarily Sold At Special Events She Is Trying To Decide Ho 1 (73.52 KiB) Viewed 39 times
Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many to produce for an upcoming event. During the event, Sally can sell T-shirts for $14 apiece. However, when the event ends, any unsold T-shirts are sold for $5 apiece. It costs Sally $10 to make a specialty T-shirt. Sally's estimate of demand is the following: DEMAND 550 625 690 715 750 815 PROBABILITY 0.25 0.21 0.02 0.11 0.18 0.23 a. What is the service rate (or optimal fractile)? (Round your answer to 2 decimal places.) Probability (service level) b. How many T-shirts should she produce for the upcoming event?