(Solved): 1- what total production quantity do you recommend for thiscompany?2-The company may add the logos a ...

Problem #2 (25 points). A company supplies apparel containing logos to four firms. Periodic demand from each firm during the season is normally distributed as shown in the following table: Firm #1 Firm #2 Firm #3 Firm #4 Mean 5,000 7,000 4,000 4,000 Standard Deviation 2,000 2,500 2,000 2,200 Each unit costs $15 and is sold for $50. Any leftover inventory at the end of the season is sold at $5. A. What total production quantity do you recommend for this company? (12 points) B. The company may add the logos at a later time with an additional cost of $3/unit. In this scenario the company may aggregate the total demand. There is correlation of 0.6 among firms. Make the necessary calculations to evaluate this option vs. the disaggregated option (13 points) Double-click to hide white space