Question: Use the following problem to answer the next 9 - 2 0 questions. A retail drug chain purchases a newly developed drug in pill form
Use the following problem to answer the next questions.
A retail drug chain purchases a newly developed drug in pill form from a pharmaceutical firm and sells it to the public. During FDA testing, it was determined that the drug' active ingredient expires quickly and the retailer can't sell pills which are purchased more than days earlier. The selling price per day supply bottle of pills is $ pills have no value and are disposed of at no cost
The marketing forecast for sales is bottles per month with standard deviation of distributed normally. The pharmaceutical firm sells the drug to the retail cha $ per bottle.
What is the cost of underage underestimating demand by one bottle of the drug?
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