Example: So$-$Cheap Bags

Example: So$-$Che

The buyer for So$-$Cheap Fashion Bags must decide on the quantity of a high$-$

priced woman's handbag to procure in Italy for the following Christmas

Season. The unit cost of the handbag to the store is $$28\mathrm{.}50$ and the handbag

will sell for $$150.$ A discount firm purchases any handbags not sold by the

end of the season for $$20.$ In addition, the store accountants estimate that

there is cost of $$0\mathrm{.}40$ for each dollar tied up in inventory at the end of the

season $($after all sales have been made$).$ How many bags should we order if

demand for the handbags are

a$)$ normally distributed with a mean of $150$ bags and std$.$ deviation of $20$

bags?

b$)$ Uniform distributed between $50$ and $250$ bags?