Question: A store that sells Easter chocolate basket would like to use Newsvendor model to determine how many chocolate baskets they should order from supplier. The

A store that sells Easter chocolate basket would like to use Newsvendor model to determine how many chocolate baskets they should order from supplier. The demand for chocolate baskets follows normal distribution with mean 1000 and standard deviation 120. The store sells each chocolate basket to customer at a price of $12, and the cost to purchase each chocolate basket from supplier is $5. What is the optimal order quantity of chocolate basket?

935

973

1025

975

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