Question
2) The contractor has learned of a different source that can supply the furnace at a cost of $650/unit but that would permit a second
2) The contractor has learned of a different source that can supply the furnace at a cost of $650/unit but that would permit a second order after the start of the sales season. The contractor forecasts that initial demand be for 2,000 snow-blowers with a standard deviation of 400. Based on this information, how many units should the contractor order and how much inventory should be expected from the order?
3) The contractor ordered from the distributor in question 2, but weather conditions suggest that demand for the remainder of the season will now be for 4,000 furnaces with a standard deviation of 500. How many more units should the contractor purchase, how many are expected to be sold across the entire season, and how many are expected to remain at the end of the season?
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