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help A luxury brand presents a new designer dress for the fall season at a by invitation-only fashion show. The company sells a certain number
help A luxury brand presents a new designer dress for the fall season at a "by invitation-only" fashion show. The company sells a certain number of those dresses at a discounted price of $5,000 during the fashion show. Typically, all dresses offered at the discounted price get sold. After the show, the remaining dresses are available at the company's New York boutique store for a full price of $9,000. The demand for dresses at the full price is normally distributed with a mean of 60 and a standard deviation of 40. There were only 130 dresses made to maintain exclusivity and high price. The company destroys all unsold merchandise at the end of each season. The company uses the Newsvendor model to determine the number of dresses that should be set aside for sale at the boutique store after the fashion show.
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