Question: SOLVE USING AMPL The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will

SOLVE USING AMPL

The Gilbert Air-Conditioning Company is considering the purchase of a special shipment

of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80, and

it will be sold for $125. Gilbert does not want to carry surplus air conditioners over until

the following year. Thus, all surplus air conditioners will be sold to a wholesaler for $50

per unit. Assume that the air conditioner demand follows a normal probability distribution

with 5 20 and 5 8.

a. What is the recommended order quantity?

b. What is the probability that Gilbert will sell all units it orders?

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