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How many toys should the retailer send

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The GOGO bunny is a hot toy this Christmas, and the manufacturer has decided to ration supply to all retailers. A large retail chain owns two channels- a discount channel and a high service channel. The retailer plans to sell the toy at a margin of $4 in the discount channel and a margin of $8 in the high service channel. The manufacturer sends 100,000 GoGo bunnies to the retailer. The retailer has forecast that the demand for the toy is at the high service channel is normally distributed, with a mean of 400,000 and a standard deviation of 150,000. How many toys should the retailer send to the high service channel?

Reference no: EM13691782

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