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A. Amitabh sells products door to door, and for an upcoming promotion, he must decide how many units of Pumpkin Spice shampoo to order. He
A. Amitabh sells products door to door, and for an upcoming promotion, he must decide how many units of Pumpkin Spice shampoo to order. He buys each bottle of shampoo for $2.20. He sells each bottle for $8.00. If there are leftover bottles, he can sell them at $0.25 each to a reseller such as Family Dollar. Amitabh estimates that mean demand is 120 with standard deviation of 40. Production lead times are long, and this is a one-time promotion for the fall, so he's got one shot to get this right. (0.5 points) a. What is the critical fractile (Customer service level)? Is this a Low margin good or a High margin good? b. Assuming a normal distribution, what is the optimal amount to order
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