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Question 3 ( 1 1 points ) . ABC Co . , a manufacturer of summer outdoor equipment, follows a make - to - order
Question points ABC Co a manufacturer of summer outdoor equipment, follows a maketoorder production policy. The fixed production cost is SAR for the manufacturer, and the variable production cost is SAR per unit. The retailer sells a unit for SAR in the season. If the products are not sold during the season, the retailer salvages them for SAR a piece. The wholesale price paid by the retailer to the manufacturer is SAR per unit. The retailer's demand is Normally distributed with a mean of units and a standard deviation of units. Use two decimal places in the calculations.
a What is the optimal order quantity of the retailer?
b Find the optimal average profit of the retailer.
c Find the optimal average profit of the manufacturer.
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