5 A fur dealer buys fur coats for $100 each and sells them for $200 each. He...
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5 A fur dealer buys fur coats for $100 each and sells them for $200 each. He believes that the demand for coats is N(100, 100). Any coat not sold can be sold to a discount house for $100, but the fur dealer believes he must charge himself a cost of 10¢ per dollar invested in a fur coat that is sold at discount. How many coats should the dealer order?
If the price at which the dealer sold his coats increased
(assuming demand is unchanged), would he buy more or fewer coats?
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Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston
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