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The selling season for ski jacket is about 16 weeks. A sportswear store is trying to decide the quantity of ski jacket for the upcoming

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The selling season for ski jacket is about 16 weeks. A sportswear store is trying to decide the quantity of ski jacket for the upcoming selling season. The unit cost of each jacket is $23. and the retail price is $1257. A discount store purchases any leftover jacket at the end of season for $25 each. Before the start of the sales season, the buyer forecasts weekly demand to be normally distributed, with a mean of 12C} and a standard deviation of 25. Let's compare the following two ordering options in terms of order quantity and expected season prot: thion 1: supply lead time is 16 weeks. Consequentlyr a single order must be placed at the beginning of the season to cover the entire season demand. thion 2: supply lead time is reduced by half to 3 weeks. Consequently. two orders can be placed for the season, one to be delivered at the beginning of the seasonr and the other to be placed at the end of week 1 and delivered at the beginning of week 10 to cover the demand for the last 2' weeks. In addition. the buyer's demand forecast accuracy of the 2ndorder will be improved due to the realized demand during week 1. As a result, the weekly demand standard deviation is dramatically reduced. Assume the demand is independent across weeks. The following table gives the expected profits and expected overstock and under- stock in option 2's two selling seasons. Dption 2: lst selling Option 2: 2nd selling season season a.............. \" 5......ch What is the expected prot for thion 2? input should be on exact number

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