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A firm orders apparels from a distant country and can order only once for the entire season. This ordering follows the assumption of the newsvendor
A firm orders apparels from a distant country and can order only once for the entire season. This ordering follows the assumption of the newsvendor model. The firm forecasts that their average demand is likely to be 8500 units. The firm believes that the possible variation in demand is normally distributed and the standard deviation is 650 units. If the apparel cost is $3, the selling price is $25 and the scrap value is zero, what is the ideal order quantity for this apparel
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