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supply chain Problem 5 : [6 points] A retailer is taking orders for certain product. The production capacity available from the supplier is 5,000 items,

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supply chain

Problem 5 : [6 points] A retailer is taking orders for certain product. The production capacity available from the supplier is 5,000 items, the cost of this product is $5/ unit. and it is sold to the customer in $20. If it has orders that exceeded capacity, it has to arrange for backup capacity that costs the retailer $36 each. Customers have been known to cancel their orders, how many orders should the supplier accept if cancelations are normally distributed, with a mean of 800 and a standard deviation of 400

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