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 $unit For every unit sold, there is a profit of $ per unit Revenue cost profit $ Unsold units are disposed. For every leftover unit, there is a loss of $unitLoss cost salvage value
a What is the mean demand?
b What is the newsvendor critical ratio?
c What is the optimal order quantity QRound up to the nearest integer if you get a noninteger.
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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