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During the Final Four, the demand for basketball jerseys is normally distributed with mean 1,000 and standard deviation 300. Each jersey costs $30. The selling

  1. During the Final Four, the demand for basketball jerseys is normally distributed with mean 1,000 and standard deviation 300. Each jersey costs $30. The selling price is $40 per jersey. What is the underage cost?

2. What is the overage cost?

3. What is the optimal service level and the optimal number of jerseys to stock?

4. If the unsold jerseys can be sold off at half price. How many jerseys should be ordered?

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