In this problem, assume the ten values provided to you (below) represent the monthly demand for a product your company orders from supplier and then sells in a retail setting.

Month	1	2	3	4	5	6	7	8	9	10
Demand	110	80	75	70	120	145	90	85	95	110

a). Assume demand is best represented by a normal distribution. What are the appropriate values for the mean and standard deviation for the demand? b). Assume orders are placed monthly with a purchase price of $20, a sales price of $40 and salvage price at the end of the month of $5. How many of these products should be purchased? (Hint Use the Newsvendor model)

c). Assume it takes 2 weeks (0.5 months) to receive an order, the penalty cost for not having a product in stock is $25 and as before the interest rate is 28% and order cost is $200. For this situation, what is the order quantity Q and how much stock should be on hand when and order is made? (Hint iterations for this problem should be done until the whole number values for both Q and R do not change.)

d). Compare the R value derived in part c of this problem to the R value derived in part c of problem 2. Why are these different? Which one would you use and why?