Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Exercise 7

Korner Hardware manager Emerson Jones is interested in determining how many Nativity Scenes to order for the ten-day holiday season.Past experience indicates that demand for these Nativity Scenes average 8 per day during this ten-day period, with a standard deviation of two per day.Demand is approximately normal.Emerson purchases the Nativity Scenes for $15 per unit and sells them for $30 each during the season.After Christmas, they are marked down as sale items for $10 each.How many should Tom order for the coming holiday season?