Question: Question 2 ( 2 + 2 + 2 + 2 + 2 = 1 0 points ) - Normal demand for newsvendor model Consider a
Question points Normal demand for newsvendor model
Consider a clothing item satisfying assumptions of the newsvendor model:
Demand Normal
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 $ unit. Loss cost salvage value
a What is the mean demand?
b What is the newsvendor critical ratio?
c What is the optimal order quantity Round up to the nearest integer if you get a non
integer.
d If we order as obtained in c what is the expected lost sales?
e If we order as obtained in c what is the expected profit?
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