Optimal quantity you should order to maximize profits

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You can sell a product for $2.50 on a certain day. All unsold products can be sold a week later for a salvage price of $1.25. The product costs you $1.75 in procurement costs to obtain. Demand for the product is expected to follow a normal distribution with mean = 100 and standard deviation = 20.

What is the optimal quantity you should order to maximize profits?

Reference no: EM131780948

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