Question
A retailer named awesome is planning for the selling season . The demand they will observe during selling season follow normal distribution. D~N (2000,200). The
A retailer named awesome is planning for the selling season . The demand they will observe during selling season follow normal distribution. D~N (2000,200). The prices they obtain in the market is rs 1000. Cost of manufacturing the product is rs. 300. The salvage value of product is rs. 100. There is one issue though, they can only salvage 50% of leftovers inventory at the salvage value and remaining 50% needs to be discarded. 1. What is optimum order quantity for awesome? 2. What is expected profit of retailer?
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