Question: Every year, Ms . Smith needs to order Christmas trees in Sep. for sales in Dec. in her convenient store. Ms . Smith has only
Every year, Ms Smith needs to order Christmas trees in Sep. for sales in Dec. in her convenient
store. Ms Smith has only one chance to order, she can't order more after the tree growing
season.
In the selling season from to Dec, she sells a tree for $
It costs her $ each to order now.
On Dec, she can sell a tree with huge discount for $
After Dec, she salvages the extra trees for $ each.
The demand for the regular period can be described as a normal distribution with mean trees
and standard deviation trees
The demand on Dec follows uniform distribution with min and max and respectively
How many trees should Ms Smith order? Hint: You can try an order of and and
report the average and confidence interval. Assume
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
