How much production capacity should the manufacturer


A manufacturer of industrial seals has production capacity of 1,000 units per day. Currently, the firm sells production capacity for $10 per unit. At this price, all production capacity gets booked about one week in advance. A group of customers have said that they would be willing to pay $15 per unit if capacity was available on the last day. About ten days in advance, demand for the high-price segment is normally distributed with a mean of 250 and a standard deviation of 100. How much production capacity should the manufacturer reserve for the last day?  

Required minimum-1 page

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: How much production capacity should the manufacturer
Reference No:- TGS0577926

Expected delivery within 24 Hours