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A unit of the product is sold for $10. The unit purchase cost is $8. At the end of the season, unrealized goods are sold
A unit of the product is sold for $10. The unit purchase cost is $8. At the end of the season, unrealized goods are sold at half price. Assuming that the demand for the product is uniformly distributed between 200 and 350. a) What is the recommended order size? b) What is the acceptable probability of stock shortage? c) What order size should be targeted if only a 10% shortage probability is allowed?
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