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A sweatshirt supplier is trying to decide how many sweatshirts to print for the NCAA basketball championships. The final four teams have emerged from the
A sweatshirt supplier is trying to decide how many sweatshirts to print for the NCAA basketball championships. The final four teams have emerged from the quarterfinal round, and there is now a week left until the semifinals, which are then followed in a couple of days by the finals. Each sweatshirt costs $10 to produce and sells for $25. However, in three weeks any leftover sweatshirts will be put on sale for half price, $12.50. The supplier assumes that the \"Demand distribution for Regular Price' (Demondl) for his sweatshirts during the next three weeks (when customer interest is at its highest) has a normal distribution with a mean of 9,750 and a standard deviation of 1,500. The 'Demand distribution for Sale Price' (Demono'Z), has a uniform distribution with a minimum of 1,250 and a maximum of 6,250. The supplier, being a profit maximizer, realizes that every sweatshirt sold, even at the sale price, yields a profit. However, he also realizes that any sweatshirts produced but not sold (even at the sale price) must be thrown away, resulting in a $10 loss per sweatshirt. Analyze the supplier's problem with a simulation spreadsheet
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