Question: . Exercise 1) Find Order quantity using Newsvendor model at a retailer facing the Normal demand with mean of 100 and SD of 30

. Exercise 1) Find Order quantity using Newsvendor model at a retailer facing the Normal demand with mean of 100 and SD of 30 to meet 97.5% Type I service level 2) If there are two retailers as in the figure, find the order Quantity if we pool all inventory at warehouse and maintain 97.5% Type I service level Assume independent demand. Retailer Warehouse Demand follows Normal Distribution with mean 100 and SD 30 (independently with other retailer's demand) Retailer Demand follows Normal Distribution with mean 100 and SD 30 (independently with other retailer's demand) 5-78

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