Question: The wholesale cost is $ 2 0 / unit . For every unit sold, there is a profit of $ 1 0 per unit (

The wholesale cost is $20/unit. For every unit sold, there is a profit of $10 per unit (Revenue = cost + profit =20+10= $30). Unsold units are disposed. For every leftover unit, there is a loss of $5/unit.(Loss = cost salvage value)
a.) What is the mean demand?
50
b.) What is the newsvendor critical ratio?
228.2
c.) What is the optimal order quantity Q*?(Round up to the nearest integer if you get a non-integer.)
d.) If we order Q* as obtained in (c), what is the expected lost sales?
e.) If we order Q* as obtained in (c), what is the expected profit?

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