Calculate the average profit for the quantity of shirts

Assignment Help Basic Statistics

Reference no: EM131929838

Qusetion: Make a Splash T-Shirts is planning to print and sell specially designed tee shirts for the upcoming World Series. The shirts will cost $12 each to produce and can be sold for $30 each until the World Series. After the World Series, the price will be reduced to $20 per shirt. The demand at the $30 price is expected to be normally distributed, with a mean of 12,000 shirts and a standard deviation of 2,500 shirts. The demand for the $20 price is expected to be normally distributed, with a mean of 5,000 shirts and a standard deviation of 1,000 shirts. Any shirts left over will be discarded. Because of the high setup costs, Make a Splash T-Shirts is planning on producing one run of 17,000 shirts. In your model use integers for all demands.

(a) Simulate N setups to calculate the average profit for this quantity of shirts.

(b) Make a Splash T-Shirts would like to evaluate producing 16,000, 17,000, 18,000, 19,000, and 20,000 shirts. Which would you recommend? Why?

Reference no: EM131929838

Questions Cloud

Compute the average time a customer waits for service : Service time follows a discrete uniform distribution between 1 and 4 minutes. Simulate the arrival of 200 customers to compute the average time a customer waits

Provide key components a nurse practitioner should consider : Selecting the Certification Exam for your specialty. Provide key components a Nurse Practitioner should consider when relocating from one state to another.

Determine the annual savings in downtime : If this new procedure is implemented, the repair time will still follow a truncated normal distribution, but the mean time will be 14 hours.

Attempting to do business internationally : What aspects of U.S. Law should U.S. companies consider when attempting to do business internationally?

Calculate the average profit for the quantity of shirts : Simulate N setups to calculate the average profit for this quantity of shirts. Make a Splash T-Shirts would like to evaluate producing 16,000, 17,000, 18,000.

Identify the certification exam you selected and explain why : Identify the certification exam you selected and explain why. Outline your plan for passing the appropriate National Certification Exam.

Computer technology for managerial decisions : List some possible advantages and disadvantages to using computer technology for managerial decisions.

Compute the expected total cost per day of the operation : Phillip Florrick is responsible for the warehouse operation for a local discount department store chain. The warehouse has only one unloading dock.

Fundamental part of management effectiveness : Why do you think decision making is considered a fundamental part of management effectiveness?

User Account

All Pages