how to get the demand distribution in order to find the exact quantity? To determine the optimal number of zongzi to produce, we can use the concept of the critical ratio or critical fractile. This concept is used in inventory management to determine the optimal order quantity that minimizes the total cost. The critical ratio is calculated as the cost of underestimation divided by the total cost (cost of underestimation + cost of overestimation). In this case, the cost of underestimation is the profit lost when demand is higher than the number of zongzi produced. This is calculated as the selling price minus the cost price, which is INR 1000 - INR 600 = INR 400. The cost of overestimation is the cost incurred when the number of zongzi produced is more than the demand. This is the cost price of the zongzi, which is INR 600. So, the critical ratio is calculated as: Critical Ratio = Cost of Underestimation / Total Cost = INR 400 / (INR 400 + INR 600) = 0.4 This means that the optimal production quantity is when the probability of demand being less than or equal to the production quantity is 0.4. To find the exact quantity, you would need the demand distribution. If the demand distribution is known, you can find the quantity corresponding to the 0.4 probability. This is the optimal number of zongzi to produce. Remember, this model assumes that the costs and revenues are constant and the demand distribution is known. If these assumptions do not hold, the model may not give accurate results