Question: Exercise 0 1 : Mrs . Kandell estimates that if she buys more Christmas trees than she can sell, it costs about $ 3 0

Exercise 01: Mrs. Kandell estimates that if she buys more Christmas trees than she can sell, it costs about $30 for the tree and its disposal. If demand is higher than the number of trees she orders, she looses a profit of $40 per tree. Assume a demand normally distributed with a mean of 100 trees and standard deviation of 10 trees a) Determine how many trees to order to minimize total cost. b) Determine the Q that you need to order to have 5% of stockout.

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