Question: . Your manager insists on providing a 9 9 % guarantee to customers of being in stock of fresh flowers. Although you maintain a wide
Your manager insists on providing a guarantee to customers of being in stock of fresh flowers. Although you maintain a wide selection of related items, some customers are bothered if they visit and you are out of stock of fresh flowers.. A survey tells you that they are bothered by the equivalent of $ It costs you $ to purchase flowers, and they sells for $ Once the flowers pass their prime, you can only turn them into dried bouquets, which sell for only $ From your sales data, you find that the demand follows the following probability distribution: Q PDQ What is the optimal quantity of fresh flowers to order? O O O O ANS:
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