A store Store is trying to determine how many dresses to order. Currently, the unit cost of purchasing dresses is $13.99 and the dresses are sold for $21, but at later dates the dresses will be offered at a 50% discount. Demand at the full price is believed to be normally distributed with mean 1800 and standard deviation 360.

Demand at the 50% discount is assumed to be two times the full-price demand (e.g. if full-price demand is 2500, then 50% discount demand will be 2*2500= 5000 dresses)

a) Use simulation to determine how many dresses the company should order.

b) Now assume the store are planning to offer the dresses at a 10% discount, then a 20% discount, then a 40% discount, then a 50% discount, and finally a 60% discount at a later point of time in the season. Demand at various discounts is assumed to be a multiple of full-price demand as follows

Discount Multiple

10%. 0.4

20% 0.7

40% 1.1

50% 2

60%. 50

Use simulation to determine how many dresses the company should order. Model the problem so that the company first orders some quantity of dresses, then discounts deeper and deeper, as necessary, to sell all of the dresses.

c) Now assume that the unit cost of purchasing dresses in problem 2b depends on the number of dresses ordered, as shown below From Unit cost 0 $15.00 1500 $14.25 3500 $13.54 6000 $12.86 Use simulation to determine how many dresses the company should order.