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Target sells a popular model of pre-lit artificial Christmas trees during the holiday season. The total procurement cost per unit is $70, and the selling

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Target sells a popular model of pre-lit artificial Christmas trees during the holiday season. The total procurement cost per unit is $70, and the selling price is $120. At this price, the anticipated demand during the selling season normally distributed, with a mean of 900 units and standard deviation of 200 units. Any unsold units at the end of the season will be disposed of in a postseason sale for $55. It costs $25 to hold a unit in inventory for the entire season. Round all entries to two decimal places. a) Compute the optimal number of units Target should order: units. b) Compute the optimal expected profit associated with the order quantity from part (a): $ c) Given the optimal order quantity, how many customers does Target expect to turn away because of stocking out? units. d) Target has recently implemented new analytics software which will help it t better track and forecast customer demand. As a result the standard deviatio for the demand distribution drops to 30 units. Compute the new optimal order quantity: units. Compute the increase in profits for Target as a result of the improved forecasting: $

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