Problem 4 Assume that the scenario in Problem 3 has a buyback price of $4 each. Calculate the optimal order quantity and manufacturer's profit for this scenario. Mean demand - 25000 Standard dev of demand - 5000 Selling price purchase cost 10 Salvage values-5 underage costs 10=20-10 loverage cost=5=10-5 Critical ration-0.6667 10/15+10) standard norm ratio=0.43= toptimal order quantity = 27154 = 0 6( lot 6 ) = 0.5 z=0 2000+ 0x500 = 2,000 units 2000 (6-2) = $8000 6 to.so) 10.50 2,000, 500) = 12000 6