Questions: Please show work on how you completed each question .

The netbook becomes available (and goes on sale) in September and is sold through February of the subsequent year (at that point, a new generation product is launched).

In March, the retailer needs to place an order for delivery in early September. The retailer will not have an opportunity to place replenishment orders before and throughout

the selling season.

1) How many units of the netbook should the retailer order(keeping in mind that the goal is to minimize total costs?)

2) what is the expected total cost in this case?

3) How many units will the retailer expect to salvage at the end of the selling season?

4) What is the expected total profit in this case?

5) The VP of Sales tells you she thinks a 99% in stock rate would be desirable. What is the actual (optimal) instock rate and why is it preferable over the (arbitrary) 99% figure mentioned by the VP of sales?

Parameter	Notation	Value
Unit purchase cost (incl. transportation, etc.)	C	$ 295.5
Unit sales price	SP	$ 525.5
Unit salvage value	G	$ 160.0
Cost of overstocking	Co
Cost of understocking	Cu
Average demand/season	D	14,100
Std. deviation of demand/season	sD	3,300