|
|
Best Case |
Most Likely |
Worst Case |
| Total
Cost of Drug/Batch |
75000 |
75000 |
75000 |
| Pounds
Produced /Batch |
900 |
850 |
700 |
|
Annual Demand in pounds |
20000 |
17500 |
10000 |
| Sales
Price per pound |
125 |
125 |
125 |
| Sales
Price of Leftover Drug per pound |
30 |
30 |
30 |
|
|
|
|
|
Batches to be produced |
22 |
20 |
14 |
|
Cost of Batches |
1650000 |
1500000 |
1050000 |
|
Sales from Drug Batches |
2475000 |
2125000 |
1225000 |
|
Sales from Drug Leftover |
0 |
0 |
0 |
|
Total Sales |
2475000 |
2125000 |
1225000 |
|
Profit |
825000 |
625000 |
175000 |
The number of batches to be produced in each scenario to have
maximum profit is given in the table..
Therefore, in best scenario, 22 batches should be produced to
maximize profit
in Most likely scenario, 20 batches should be produced to
maximize profit
in best scenario, 22 batches should be produced to maximize
profit
in worst scenario, 14 batches should be produced to maximize
profit.
Hope I answered your query..
