Shady tree a manufacturer of lawn care equipment has, Ask an Expert

Management Studies

Shady Tree, a manufacturer of lawn care equipment, has introduced a new product. Each unit costs $150 to manufacture. The product will be sold for a price of $200.

At this price the expected demand, which is assumed to be normally distributed, will have a mean, mu, equal to 100 and a standard deviation of demand, sigma, equal to 40. Any unsold units at the end of the season will have to be discounted to a price of $50.

It costs Shady Tree $20 to hold one of these units in its inventory for the full season. How many units should Shady Tree manufacture for sale?

What profit could they expect from their decision?

On average, how many customers for this product will Shady Tree expect to have to turn away because of stocking out?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92789262

Have any Question?Write your Review or question?

Related Questions in Operation Management

Briefly explain the american recovery and reinvestment act

Briefly explain the American Recovery and Reinvestment Act as it relates to the implementation of the HITECH act. Discuss the need for HIPAA compliance as a result of HITECH implementation and include the impetus for the ...

Best buy is the largest consumer electronics retailer in

Best Buy is the largest consumer electronics retailer in the United States, accounting for 19 percent of the market. Globally, it operates around 4,000 stores in the United States, Canada, Mexico, China, and Turkey. Its ...

Case study munson medical center constant focus on patient

Case Study: "MUNSON MEDICAL CENTER: Constant Focus on Patient Satisfaction Write a position statement which is a simple sentence identifying the central issue/s you perceive to be the focus of the case. NOTE: Each studen ...

Deming revisitedyou read about demings 14 points and

Deming Revisited You read about Deming's 14 Points and discussed their merits, or lack thereof. It is those 14 Points that comprise the SPK and are the forebears of the agile and lean movements so popular today. So expla ...

Digital dashboards offer an effective and efficient way to

Digital dashboards offer an effective and efficient way to view enterprisewide information at near real-time. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a company’s ...

A major goal of a strategic alliance is to create

A major goal of a strategic alliance is to create additional value for both firms. After reading the Chapter 9 of the textbook and reviewing the Powerpoint slides on the chapter, answer the following questions. There are ...

1 why is it important for logistics manager to be educated

1. Why is it important for logistics manager to be educated about the product/ merchandise that is to be shipped? 2. Identify an issue and discuss a recommendation on cargo security. 3. What are some of the environm ...

1 describe the workplace policies common in the business

1. Describe the workplace policies common in the business world. How are these policies constructed? What content might they include, and what are the typical procedures for administering these policies? 2. List Various ...

For each one of the risk factors for work-related stress

For each one of the risk factors for work-related stress: • Poorly managed relationships, • Low levels of recognition and reward, 1. Think about some possible solutions or ways to mitigate each of the risk factors that c ...

1 why do you want to work in electronic payment section for

1. Why do you want to work in electronic payment section for a transportation commission company 2. Elaborate and describe the key steps in the marketing research process that Panasonic should take in the context of intr ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert