1. ABC Computer company makes notebook computers. The economic lifetime of a particular model is only 4-6 months, which means ABC had very little time to make adjustments in the production capacity and supplier contracts or the production run. For a soon-to-be-released notebook, ABC must negotiate a contract with a supplier of motherboards. Because supplier capacity is tight, this contract will specify the number of motherboards in advance of the start of the production run. At the time of the contract negotiation, ABC has estimated demand to be normally distributed with a mean of 10,000 and standard deviation of 2,500. The net profit from a notebook is $500 (note that this includes the price of the motherboard as well as all the other costs to make the item). Motherboards cost $200 each and have no salvage value if they are not used. a. Use the newsvendor model to determine how many motherboards ABC should purchase. b. How appropriate is this model for this situation? What factors are not considered that may be important?