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please answer all parts thanks a lot! Question 2(2+2+2+2+2=10 points ) - Normal demand for newsvendor model Consider a clothing item satisfying assumptions of the
please answer all parts
Question 2(2+2+2+2+2=10 points ) - Normal demand for newsvendor model Consider a clothing item satisfying assumptions of the newsvendor model: Demand Normal [=120,=30]. The wholesale cost is $20/ unit. For every unit sold, there is a profit of $15 per unit (Revenue = cost + profit =20+15=$35 ). Unsold units are disposed. For every leftover unit, there is a loss of \$10/unit. (Loss = cost - salvage value) a.) What is the mean demand? b.) What is the newsvendor critical ratio? c.) What is the optimal order quantity Q*? (Round up to the nearest integer if you get a noninteger.) d.) If we order Q as obtained in (c), what is the expected lost sales? e.) If we order Q as obtained in (c), what is the expected profit thanks a lot!
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