Chip Bilton sells sweatshirts at State U football games. He is equally likely to sell 200 or 400 sweatshirts at each game. Each time Chip places an order, he pays $500 plus $5 for each sweatshirt he orders. Each sweatshirt sells for $8. A holding cost of $2 per shirt (because of the opportunity cost for capital tied up in sweatshirts as well as storage costs) is assessed against each shirt left at the end of a game. Chip can store at most 400 shirts after each game. Assuming that the number of shirts ordered by Chip must
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here