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A retailer stocks flower bouquets each weekend. The cost to purchase the flowers is $9 per bouquet and the selling price is $22 per bouquet.
A retailer stocks flower bouquets each weekend. The cost to purchase the flowers is $9 per bouquet and the selling price is $22 per bouquet. Unsold flowers spoil and are donated to a nursing home at the end of the weekend (which costs nothing and brings no revenue). The average demand for flowers is 300 with a standard deviation of 100. What is the unit underage cost in dollars? According to the Newsvendor model, what is the optimal in-stock probability? Choose the closest answer O 0.23 O 0.59 O 0.41 O 1.00 If the retailer stocks 390 bouquets, what is the probability that the retailer runs out of stock? Use the Newsvendor model and the z-table. Express your answer as a decimal (between 0 and 1) and round to the nearest 0.01 If the retailer stocks 380 bouquets, what is the expected inventory? Use the Newsvendor model and the z-table. Round to the nearest whole number of bouquets
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