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A foundry receives an order for specialty castings. Cost of producing each casting is estimated to be $15,000. The customer requires that exactly 4 good castings be supplied. The customer will pay $20,000 for each good casting. If fewer than four good castings are available, none will be purchased. Each casting is produced independently and the probability of an individual casting being acceptable to the customer is .80. 1/ Develop the expected profit function to be maximized? 2/ Determine the production lot size that maximizes expected profit? 3/ Determine the lot size that will yield a probability of .90 of producing at least 4 good castings. What is the expected profit for the lot size obtained?
Question: S&V Industries manufactures book cases. Different sizes of cases are kept in inventory. The company has 80 man-hours and 36 pounds of wood available each day. 2 pounds of
What are the Chase demand strategies? Chase demand strategies: It is just the opposite of a level capacity strategy. The organisation frequently chases customer demand an
Product Layout - Connected Flow Where the demand for a single product is sufficiently high to warrant truly continuous operation (mass production for discrete items such as, c
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Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two op
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