Question: Given a uniform demand distribution in the range 1 0 0 , 1 3 0 , the sale price per unit is $ 1 6

Given a uniform demand distribution in the range 100,130, the sale price per unit is $16, the cost
per unit is $12, and the salvage value per unit is $2. If a contract is signed with the supplier, the
cost per unit will be reduced to $10, and unsold units can be bought back at $6 per unit. The
probability density function for the demand is f(x)=1b-a.
a) Calculate the expected cost and write down the expected cost function.
b) Determine the optimal order quantity Q**.
c) What is the percentile of the demand at the optimal order quantity Q**?
PLEASE ANSWER DETAILED, ESPECCIALY DERIVATIVE PARTS.
 Given a uniform demand distribution in the range 100,130, the sale

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