Question: Inventory Management Perishable Demand Warm Hats LLC is determining the amount of beanie style winter hats to order from their overseas manufacturing partner. The order

Inventory Management Perishable Demand

Warm Hats LLC is determining the amount of beanie style winter hats to order from their overseas manufacturing partner. The order for the hats needs to be placed well in advance of the cold months due to long lead times in the factory and shipping time. The expected demand for the hats is 120,000 with a standard deviation of 15,000. Hats sell for $67 each and cost $23 to make. Leftover hats that do not sell are sold at a discount for $19.

How many hats should Warm Hats LLC order? Also calculate expected inventory, expected sales and expected profit for Q*.

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