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 One Target store orders milk in gallon package using newsvendors model. The demand for the milk follows a normal distribution and the average is units, with a standard deviation of units during each order cycle. The retail price of the milk is $ per unit, and the cost for Target is $ per unit. Target will mark those leftover milk near their expiration date down for $ per unit as special sales and Target is always able to sell all the leftover milk during those special sales. points
Question Assuming this Target store orders units, what is the expected onhand inventory? Please keep at decimal places
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