Pony express creations pec is a manufacturer of party hats


Pony Express Creations (PEC) is a manufacturer of party hats, primarily for the Halloween season. One of its popular products is Elvis wig, complete with sideburns and metallic glasses which they sell for $12.50. The Elvis wig is purchased from China for $2.25, so PEC must make a single order well in advance of the upcoming season. Let us assume that any unit that is not sold would be trashed at no cost. Ryan, the Operations Manager at PEC, expects demand to be 25,000 with standard deviation of 2000. What is the optimal one time order quantity?

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Operation Management: Pony express creations pec is a manufacturer of party hats
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