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Before the Easter Holiday, Wally World wants to choose an order quantity for giant chocolate bunnies that will maximize their expected profit. Their expected demand
Before the Easter Holiday, Wally World wants to choose an order quantity for giant chocolate bunnies that will maximize their expected profit. Their expected demand follows a normal distribution with a mean of 3,750 bunnies and a standard deviation of 450 bunnies. Each giant chocolate bunny costs $5.25 and can be sold for $13.00. Unsold giant chocolate bunnies will be marked down to $3.25. a. How many giant chocolate bunnies should Wally World order for the upcoming Easter Holiday season? b. What is the in-stock probability if Wally World orders 4650 giant chocolate bunnies? c. What is the stock-out probability if Wally World orders 4200 giant chocolate bunnies? d. How many would Wally World have to order to achieve a 99% in stock probability
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