During the Inept Management Day festivities, the citizens of X country elect through online polls the most clueless, psychologically unstable, incompetent, and damaging leader, and then hang the pictures of that leader on their balcony clotheslines. Company Y sells copies of the picture and needs to order them from a print shop. The cost per picture copy bought from print shop is 71.50 local currency units (LCU), and during the festivities they are sold for 119.50 LCU per copy. It is expected that any stock of the pictures remaining unsold after the festivities can be given for recycling to a toilet paper manufacturer at the sale price of 59.50 LCU per copy. Assume that a uniform probability distribution ranging from 6830 to 7680 copies describes the demand, with average expected demand of 7255. What is the optimal order size of picture copies for the Inept Management Day under these conditions?
During the Inept Management Day festivities, the citizens of X country elect through online polls the most clueless, psychologically unstable, incompetent, and damaging leader, and then hang the pictures of that leader on their balcony clotheslines. Company Y sells copies of the picture and needs to order them from a print shop.
The cost per picture copy bought from print shop is 71.50 local currency units (LCU), and during the festivities they are sold for 119.50 LCU per copy.
It is expected that any stock of the pictures remaining unsold after the festivities can be given for recycling to a toilet paper manufacturer at the sale price of 59.50 LCU per copy.
Assume that a uniform probability distribution ranging from 6830 to 7680 copies describes the demand, with average expected demand of 7255. What is the optimal order size of picture copies for the Inept Management Day under these conditions?
equal to or less than 6920 copies
between 6920 and 7220 copies
more than 7220, but less than 7420 copies
more than 7420, but less than 7920 copies
more than 7920 copies
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