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For next year, WebFlix projects that demand at its processing facility is normally distributed with mean 3,600 DVDS per day and standard deviation of 60. WebFlix needs to set a capacity for this facility, which is measured in DVDs per day. If the capacity is Q, then the cost per day incurred for this capacity is $0.1Q, no matter whether the capacity is fully utilized or not. If demand on a day exceeds the chosen capacity, then WebFlix processes the entire excess using overtime. In that case, each DVD handled with overtime costs $0.15 to process. What is the optimal processing capacity that WebFlix will need?

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HR Management, Management Studies

Category:- HR Management
Reference No.:- M92552042

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