Question: Consider the same problem looking at Thanksgiving ordering for frozen turkeys: Each turkey costs the grocery store $18. In the month before Thanksgiving, the turkeys

Consider the same problem looking at Thanksgiving ordering for frozen turkeys: Each turkey costs the grocery store $18. In the month before Thanksgiving, the turkeys sell for $30. Historical average demand for Thanksgiving turkeys is 5250 with a standard deviation of 1436.

What should be the post-Thanksgiving sale price for optimal order quantity Q* to be equal to 5000?

Demand

Probability

Cumulative Probability

3000

10 %

10%

3500

10 %

20%

4000

10 %

30%

4500

10 %

40%

5000

10 %

50%

5500

10 %

60%

6000

10 %

70%

6500

10 %

80%

7000

10 %

90%

7500

10 %

100%

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