Question: Question 2 ( 2 + 2 + 2 + 2 + 2 = 1 0 points ) Normal demand for newsvendor model Consider a clothing
Question points Normal demand for newsvendor model
Consider a clothing item satisfying assumptions of the newsvendor model:
Demand ~ Normal mu sigma
The wholesale cost is $unit For every unit sold, there is a profit of $ per unit Revenue cost profit $ Unsold units are disposed. For every leftover unit, there is a loss of $unitLoss cost salvage value
a What is the mean demand?
b What is the newsvendor critical ratio?
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