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per unit. 5. A fashion store has to order the items that it sells, many months in advance of the fashion season in order to

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per unit. 5. A fashion store has to order the items that it sells, many months in advance of the fashion season in order to get a good price on the items. Each unit costs $100. Items not sold during the season can be sold to the outlet store at $80 per unit. If the store runs out of an item during the season it has to obtain the item from alternative sources and the cost including air freight to the store is $190 Suppose the demand for the items is approximated as a continuous uniform in the interval (50,150). Thus the probability density function of demand is f(x) = To when 50 S S 150 and 0 otherwise. What is the optimal number of items should the fashion store purchase to minimize its expected cost? What is the minimum expected total cost

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