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An aegean sea fish market buys swordfish daily for $2.10 per pound and sells it for $3.60 per pound. at the end of each business day any remaining swordfish is sold to a cat food company for $1.20 per pound. Daily demand can be approximated by a normal distribution with a mean of 150 pounds and a standard deviation of 9 pounds.
a) Determine the optimal stocking level for the Aegean sea fish market.
b) if the demand is distributed according to continuous uniform distribution with a mean of 150 pounds and the minimum and the maximum demand values are 130 and 170 pounds respectively, what is the optimal stocking level? Assume that all of the cost values remain the same.
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