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1. Bower is an outdoor clothing accessories chain that produces a line of hats for $10 from its Asian supplier, BowerSports. Unfortunately at the time of order placement, demand is uncertain. Bower forecasts that its demand is normally distributed with a mean of 2,100 and standard deviation of 1,200. The hats are sold for $22. Unsold hats have little salvage value: Bower simply donates them to charity.

Assume the order quantity Q = 3,000.

g) What is its expected profit? Expected Profit = _______________ h) What is the expected fill rate (i.e. service level) Service Level = ________________ i) What is its stock-out probability? Probability = ________________