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    Operation problem - Sally's Silk Screening

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    Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many to produce for an upcoming event. During the event itself, which lasts one day, Sally can sell T-shirts for $20 apiece. However, when the event ends, any unsold T-shirts are sold for $4 apiece. It costs Sally $8 to make a specialty T-shirt. Using Sally's estimate of demand that follows, how many T-shirts should she produce for the upcoming event?

    DEMAND PROBABILITY
    300 .05
    400 .10
    500 .40
    600 .30
    700 .10
    800 .05

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    https://brainmass.com/business/operations-research/operation-problem-sally-s-silk-screening-308617

    Solution Summary

    The solution computes how many T-shirts should Sally produce for the upcoming event.

    $2.49

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