Question: Question 3 ( 1 1 points ) . ABC Co . , a manufacturer of summer outdoor equipment, follows a make - to - order

Question 3(11 points). ABC Co., a manufacturer of summer outdoor equipment, follows a make-to-order production policy. The fixed production cost is 9,000 SAR for the manufacturer, and the variable production cost is 30 SAR per unit. The retailer sells a unit for 100 SAR in the season. If the products are not sold during the season, the retailer salvages them for 15 SAR a piece. The wholesale price paid by the retailer to the manufacturer is 60 SAR per unit. The retailer's demand is Normally distributed with a mean of 2,050 units and a standard deviation of 500 units. Use two decimal places in the calculations.
a) What is the optimal order quantity of the retailer?
"b) Find the optimal average profit of the retailer.
c) Find the optimal average profit of the manufacturer.

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