Question: Galaxy Co . sells virtual reality ( VR ) goggles targeted to customers who like to play video games. Galaxy procures each pair of goggles

Galaxy Co. sells virtual reality (VR) goggles targeted to customers who like to play video games. Galaxy procures each pair of goggles for $150 from its supplier and sells each pair of goggles for $300. Monthly demand for the VR goggles is a normal random variable with a mean of 180 units and a standard deviation of 45 units. At the beginning of each month, Galaxy orders enough goggles from its supplier to bring the inventory level up to 160 goggles. If the monthly demand is less than 160, Galaxy pays $20 per pair of goggles that remains in inventory at the end of the month. If the monthly demand exceeds 160, Galaxy sells only the 160 pairs of goggles in stock. Galaxy assigns a shortage cost of $40 for each unit of demand that is unsatisfied to represent a loss-of-goodwill among its customers. Management would like to use a simulation model to analyze this situation.
What is the average monthly profit resulting from its policy of stocking 160 routers at the beginning of each month? Round your answer to the nearest dollar.
_______________
What is the proportion of months in which demand is completely satisfied? Round your answer to the nearest whole number.
________________
Use the simulation model to compare the profitability of monthly replenishment levels of 105,160, and 195 routers. Which monthly replenishment level maximizes profitability?
Use the corresponding 95% confidence intervals on the average profit to make your comparison. Round your answers to the nearest dollar.
Lower Bound: ________
Upper Bound: ________

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