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 210 units and a standard deviation of 52.5 units. At the beginning of each month, Galaxy orders enough goggles from its supplier to bring the inventory level up to 190 goggles. If the monthly demand is less than 190, Galaxy pays $20 per pair of goggles that remains in inventory at the end of the month. If the monthly demand exceeds 190, Galaxy sells only the 190 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.

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