As stated in Example 12.6, the critical fractile analysis is useful for finding the optimal order quantity, but it doesn’t (at least by itself) show the probability distribution of net profit. Use @RISK, as in Chapter 10, to explore this distribution. Actually, do it twice, once with the triangular demand distribution and its optimal order quantity and once with the normal demand distribution and its optimal order quantity. What can you say about the resulting distributions of net profit?

What can you say about the resulting expected net profits? Could you use @RISK to confirm that these order quantities are indeed optimal? Explain how.