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Prado , a luxury fashion retailer , is gearing up to launch a limited - edition designer handbag . The company's goal is to maximize
Prado a luxury fashion retailer is gearing up to launch a limited edition designer handbag The company's goal is to maximize profits while also ensuring a high level of customer satisfaction which is defined as being able to fulfill at least of customer orders As an operations analyst at Prado your task is to use the Newsvendor model to recommend the optimal inventory level for these handbags in the upcoming season This decision should take into account both profitability and the desired service level You have the following information : Demand Characteristics : The demand is normally distributed with a mean of units and a standard deviation of units Financial Details : The cost per hand bag is $ seling price is per handbag is $ and the clearance price for unsold handbags at the end of the season is $
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