Question: (Chapter 13 Newsvendor Problem) ACE hardware needs your help to determine the number of Weber patio grills to purchase from Weber Alliance Distributor before the

(Chapter 13 Newsvendor Problem) ACE hardware

(Chapter 13 Newsvendor Problem) ACE hardware needs your help to determine the number of Weber patio grills to purchase from Weber Alliance Distributor before the 2020 summer season opens. The grill retails at $1000. Weber Alliance Distributor sells the grills to ACE at wholesale price of $750 per unit. It cost Weber Alliance $500 per unit to produce the grills through a subsidiary located in Wuhan China. ACE can dispose the leftover grills at the end of the summer selling season at $563 per unit. ACE estimates that demand for this grill is normally distributed with mean of 40 units and standard deviation of 6 units. What is ACE's expected inventory? (Use Table 13.4 and round-up rule) 27 grills O 3 grills O 17 grills 34 grills

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