Question: Suppose we are analyzing the weekly demand for a given product that averages 1,500 units with a standard deviation = 800 units. Each product costs

Suppose we are analyzing the weekly demand for a given product that averages 1,500 units with a standard deviation = 800 units. Each product costs $10, and incurs a holding cost of 25% per year to carry inventory. The company has an opportunity to set up a warehouse in the local area to avoid the international shipping costs. Each order shipped from Europe currently incurs a fixed transportation and delivery cost of $10,000 What is the probability that on any given week the demand will be greater than 2,300 units? Select one: a. 2.5% b. 16% C. 50% d. 84%

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