Assignment $11$

$-$ Suppose Amazon,

$-$ Sells wetsuits

$-$ Orders once a year

$-$ Suppose for wetsuits sold by Amazon,

$-$ Sales price is $\backslash (\backslash$$ $200\backslash )$ per suit

$-$ Cost of the wetsuit is $\backslash (\backslash$$ $40\backslash )$ per suit

$-$ Damand for each yaar is normally distributed with

$-$ Mean damand of $800$ sults sach year

$-$ Standard dedation of the damand of $200$ sults

$-$ At the and of the season, any unsold wetsuit is sold to discount storas for $\backslash$$$25$ per suit

$-$ Amazon also pays transportation cost to the discount store $\backslash$$$5$ per suit

$-$ Questions

$-(1)$ How many wetsuits should Amazon order each year to maximize expected profit?

$-(2)$ What is CSL$?$

$-($a$)$ What is expacted profit?

$-(4)$ What is expactad overstock?

$-(5)$ What is axpactad understack?