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Business, 22.04.2021 20:10 Bearboy5957

Production cost is $20 per knit garment and the garments are sold for a wholesale price of $50. Any unsold knit garment at the end of the season is salvaged at $10. Introducing postponement requires flexible machinery and hence, increases the cost to $22. The demand, however, now has one dominant color:
red-color shirts have the mean of 3,100 and the standard deviation of 800.
Other three colors:
mean demand is 300 each, and the standard deviation is 200 for each colored shirt.

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