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You buy seafood from a distributor for $5/pound and sell it in a local market at $15/pound. Daily demand is Normally distributed with mean =
You buy seafood from a distributor for $5/pound and sell it in a local market at $15/pound. Daily demand is Normally distributed with mean = 100 and standard deviation = 20. You replenish your seafood every morning (paying no fixed costs) to a base stock level of S. Unsold seafood must be stored overnight, in cold storage, which costs $1/pound for the night but ensures that your seafood never perishes. Any unfulfilled demand is lost to the other v
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