Consider yourself as purchasing manager and you are dealing with a seasonal item, for whom you can order once in a season. As you know cost of under stocking and cost of overstocking both are the concern for a purchasing manager and a company. Considering the following demands with their respective probabilities. How much would you will be willing to order, in order to ensure the optimal product availability?

NOTE: (price = $100, cost =$ 60, unsold price= $ 50), (you can only order in multiple of thousands).

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