Derive the optimal price and demand for each segment

Assignment Help Operation Management

Reference no: EM132250370

Zen Lighting distributes a lamp design in two customer segments (i = 1 and 2). The annual demand is linearly defined by the function Di=Ai-BiPi and is defined by A1=4100 B1= 15 and A2=8300 B2= 48. The lamp production cost is $24/unit. The maximum annual supply is 5000 units.

1. Derive the optimal price and demand for each segment?

2. What is the Net Supply Chain Profit?

3. Zen Lighting abandons the linear demand model for the higher demand (i=1) segment. Instead, it assumes that at a price of $140 the demand is normally distributed with a mean of 3300 units and an Std. Dev of 1200 units. If the i=2 price is set at your answer from (i) what quantity should be allocated to the higher price segment?

Reference no: EM132250370

Questions Cloud

What is the chance that of the ten students : What is the chance that of the ten students who enroll in the course, at least 6 will stay.

Identify the organization many stakeholders : Pick a healthcare organization, identify the organization's many stakeholders and list their stakes/expectations.

How do we calculate the intercept : You believe for all buyers the average amount purchased depends on age and income of the buyers. If the sample intercept is 51.06, the slope of the age is 6.59

Interquartile range for the distribution of nox levels : Find the interquartile range for the distribution of NOX levels in the exhaust of trucks rounded to four decimal places.

Derive the optimal price and demand for each segment : Zen Lighting distributes a lamp design in two customer segments (i = 1 and 2). Derive the optimal price and demand for each segment?

Research the phases of the sexual offense cycle : Research the phases of the sexual offense cycle and describe the different thoughts and behaviors within the phase.

Housing expenditures between not married and married : Research Question: Is there a difference in housing expenditures between not married and married people (this is a 2-tailed test)

How does police discretion lead to racial discrimination : How did changes within the criminal justice system contribute to increasing punishment and incarceration since the 1970s?

Bottles of wine is the company average inventory : On average, a wine company can sell 10000 bottles of wine per month. how many bottles of wine is the company's average inventory?

User Account

All Pages