The demand for a product of Carolina Industries varies

Last updated: 2/9/2024

The demand for a product of Carolina Industries varies greatly from month to month The probability distribution in the following table based on the past two years of data shows the company s monthly demand Unit Demand 300 400 500 600 Probability 0 16 0 27 0 42 0 15 a If the company bases monthly orders on the expected value of the monthly demand what should Carolina s monthly order quantity be for this product The monthly order quantity should be units b Assume that each unit demanded generates 63 in revenue and that each unit ordered costs 53 How much will the company gain or lose in a month if it places an order based on your answer to part a and the actual demand for the item is 389 units Select your answer