. n - . Suppose Amazon, Sells wetsuits Orders once a year Suppose for wetsuits sold by Amazon, Sales price is $300 per suit Cost of the wetsuit is $150 per suit Demand for each year is normally distributed with Mean demand of 1000 suits each year Standard deviation of the demand of 400 suits At the end of the season, any unsold wetsuit is sold to discount stores for $100 per suit Amazon also pays transportation cost to the discount store $10 per suit Questions (1) How many wetsuits should Amazon order each year to maximize expected profit? (2) What is CSL? (3) What is expected profit? (4) What is expected overstock? (5) What is expected understock? 3 . n - . Suppose Amazon, Sells wetsuits Orders once a year Suppose for wetsuits sold by Amazon, Sales price is $300 per suit Cost of the wetsuit is $150 per suit Demand for each year is normally distributed with Mean demand of 1000 suits each year Standard deviation of the demand of 400 suits At the end of the season, any unsold wetsuit is sold to discount stores for $100 per suit Amazon also pays transportation cost to the discount store $10 per suit Questions (1) How many wetsuits should Amazon order each year to maximize expected profit? (2) What is CSL? (3) What is expected profit? (4) What is expected overstock? (5) What is expected understock? 3