Question: The question is divided into 1,2,3, can you please solve all of them? Question 6 (20 points) Consider a seasonal item with single ordering option.

The question is divided into 1,2,3, can you please solve all of them?

Question 6 (20 points) Consider a seasonal item with single ordering option. Unit price is $60/unit, selling price is $100/unit, and salvage value is $51/unit. Demand is assumed as discrete and to follow the below distribution: Unit 300 400 500 600 700 800 Probability 0.1 0.1 0.4 0.2 0.1 0.1 1. (5 points) What is the expected demand and standard deviation of demand? 2. (5 points) What is the profit maximizing order size? What is the expected profit? 3. (10 points) If supplier offers all units discount for 750 and more units with unit price $55/unit, does the profit maximizing order size change? (Hint: Consider the profits for 700 units-which you already computed in previous part- and for 800 units-where discount applies-.) If yes, what is the improvement in expected profit

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