Question: A retailer planning to sell jackets during winter faces the following probability distribution of demand for jackets: x Probability ( D = x ) Probability

A retailer planning to sell jackets during winter faces the following probability distribution of demand for jackets: x Probability(D=x) Probability(D<=x)518%8%529%18%5310%28%5411%38%5512%50%5612%62%5711%72%5810%82%599%92%608%100% The retailer buys each jacket for $400 and sells it for $600. The retailer sells any leftover jacket in the spring sale at $300. What is optimal service level retailer should target and what is the optimal order quantity of jackets? 50% and 5766.7% and 5666.7% and 5750% and 55

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