Example [Discrete Distribution] USA Eagle sells winter parkas for $100. They purchase them from their supplier for $45. The holding and transportation cost is $10. If they are unable to sell all the parkas at the end of the season, they put them on clearance for sale at $50. The demand distribution is given below based on historical sales data. How many parkas should be ordered? Demand Probability (in 100) 4 0.01 5 0.02 6 0.04 7 0.08 8 0.09 9 0.11 10 0.16 11 0.20 12 0.11 13 0.10 14 0.04 15 0.02 16 0.01 17 0.01 351.com