Question: A retailer considers purchasing a perishable product for the upcoming selling season. The Department of Sales and Marketing forecasts that demand for the product will

A retailer considers purchasing a perishable product for the upcoming selling season. The Department of Sales and Marketing forecasts that demand for the product will follow a Normal Distribution with the mean of 1000 units and the standard deviation of 500 units. The firm will earn the profit of 580 per unit sold during the selling season. For any unit left at the end of the selling season, the firm will have to discount deeply and that will result in a loss of $20 per unit. Find the optimal order quantity to maximize the expected profit of the firm. 1221 units 1421 units 1621 units 1821 units 2021 units 1000 units

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