The demand forecast for a product has a mean of 400 units and a standard deviation of 100 units. The product is purchased at a unit cost of $15, and is sold at a regular price of $23. The unsold product at the end of the selling season is salvaged at a discounted price of $11. The Newsvendor model is applied to find the optimal stocking quantity. How many units should the company stock to maximize its profit?

a.

400

b.

387

c.

444

d.

360

e.

467