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Flextrola, Inc., an electronics systems integrator, is planning to replenish a key component, produced by Solectrics, for its next - generation product. Flextrola will integrate

Flextrola, Inc., an electronics systems integrator, is planning to replenish a key component, produced by Solectrics, for its next-generation product. Flextrola will integrate the component with some software and then sell it to consumers. Given the short life cycles of such products and the long lead times quoted by Solectrics, Flextrola only has one opportunity to place an order with Solectrics prior to the beginning of its selling season. Flextrolas demand during the season is normally distributed with a mean of 1000 and a standard deviation of 600. For each component Solectrics charges Flextrola c= $72. Flextrola sells these units to consumers for r= $121 each. Flextrola can sell unsold inventory at the end of the season in a secondary electronics market for s= $48 each. How many units should Flextrola order to maximize its expected profit? What is its expected profit? (Hint: Use Excel template for Newsvendor model)
A. Q*=1266, E(Profit)= $64,142
B. Q*=1266, E(Profit)= $33,162
C. Q*=1960, E(Profit)= $78,564
D. Q*=1960, E(Profit)= $65,312

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