Question: Each week, a computer store sells an average of 2 0 0 sets of audio speakers. Weekly demand is normally distributed with a standard deviation

Each week, a computer store sells an average of 200 sets of audio speakers. Weekly demand is
normally distributed with a standard deviation of 4 sets. The store orders speakers from a national
distributor. Each order is filled in two weeks. The cost of placing each order is $32, and the weekly
cost of holding one set of speaker in inventory is $2. The per-unit stockout cost is assumed to be
$8. The store is willing to assume that all demand is back-logged.

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