Matching Supply with Demand: An Introduction to Operations Management by Terwiesch Christian & Gerard Cachon
Author:Terwiesch, Christian & Gerard Cachon [Terwiesch, Christian]
Language: eng
Format: mobi
Publisher: The McGraw-Hill Companies
Published: 2008-04-06T16:00:00+00:00
Q 11.8 (Land's End) Geoff Gullo owns a small firm that manufactures “Gullo Sunglasses.” He has the opportunity to sell a particular seasonal model to Land's End. Geoff offers Land's End two purchasing options:
This season's demand for this model will be normally distributed with mean of 200 and standard deviation of 125. Land's End will sell those sunglasses for $100 each. Geoff 's production cost is $25.
a. How much would Land's End buy if they chose option 1?
b. How much would Land's End buy if they chose option 2?
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