Question: Question 2 ( 2 + 2 + 2 + 2 + 2 = 1 0 points ) Normal demand for newsvendor model Consider a clothing

Question 2(2+2+2+2+2=10 points) Normal demand for newsvendor model
Consider a clothing item satisfying assumptions of the newsvendor model:
Demand ~ Normal [\mu =100,\sigma =20].
The wholesale cost is $20/unit. For every unit sold, there is a profit of $10 per unit (Revenue = cost + profit =20+10= $30). Unsold units are disposed. For every leftover unit, there is a loss of $5/unit.(Loss = cost salvage value)
a.) What is the mean demand?
b.) What is the newsvendor critical ratio?

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