10 EconomicsYou are the production manager for Annie'sTricky Emporium, in charge of making explodingcigars.The forecasted demand for cigars for the nextfour days is 220, 150, 100, and 70. It costs 50¢ tomake each cigar and you sell them for $1.a. What is the recommended production rate if alevel strategy is adopted with no back orders orstock outs? What is the ending inventory for day4 under this plan? At the end of this period allthe cigars have to be disposed of. What is yourtotal revenue and your profit?b. What is the level production rate with noending inventory in month 4? Backorders costyou a 25¢ penalty in sales price (essentiallycalculate as if you sold them on that same day at75¢) What is your total revenue and your profit?Please show all work. Thank you!

Find the Given details below: Day 1 2 3 4 Total Demand (Unit) 220 150 100 70 540

Answered: You are the production manager for…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter15: Retailing, Direct Marketing, And Wholesaling

Section15.1: L.l.bean: Open 24/7, Click Or Brick

Problem 3VC

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