Question
It is October 15, and Furr's stationery must decide how many calendars it should order from the World Wildlife Federation. The calendars cost the company
It is October 15, and Furr's stationery must decide how many calendars it should order from the World Wildlife Federation. The calendars cost the company $4.25, and Furr's sells them for $9.50. The calendars will arrive on November 1, and demand during the period between November 1 and Christmas is estimated to follow a normal distribution with a mean of 250 units and a standard deviation of 40 units. Any calendars that remain after Christmas will be marked down to $2.00 and sold at Furr's annual after-Christmas sale. If Furr's runs out of calendars before Christmas, it estimates it suffers a goodwill cost of $1.50 for each calendar demanded when it is out of stock. If Furr's can only place one order for the calendars and there is a $20 cost of placing an order, determine:
a.How many calendars it should order.
b.The expected pro .t it will earn on the calendars.
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a Furrs should order 311 calendars The 311th calendar will be demand...Get Instant Access to Expert-Tailored Solutions
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