An organization hosting a 5K race is looking to sell t-shirts at the event. Demand for t-shirts is believed to be normally distributed with a mean of 100 and standard deviation of 15. With a marginal loss of $4  and marginal profit of $5. How many t-shirts should the organization stock for the 5K race?

Answer rating: 100% (QA)

To determine the optimal number of tshirts the organization should stock for the 5K race we will use the Newsvendor model which is commonly used for i... View the full answer