Question: Problem 5 . One Target store orders milk in 1 gallon package using newsvendor s model. The demand for the milk follows a normal distribution

Problem 5. One Target store orders milk in 1 gallon package using newsvendors model. The demand for the milk follows a normal distribution and the average is 150 units, with a standard deviation of 60 units during each order cycle. The retail price of the milk is $3 per unit, and the cost for Target is $2 per unit. Target will mark those left-over milk near their expiration date down for $1.5 per unit as special sales and Target is always able to sell all the left-over milk during those special sales. (24 points)
Question 7. Assuming this Target store orders 250 units, what is the expected on-hand inventory? (Please keep at 4 decimal places)

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