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Question
A fashion retailer is planning its orders of a women's blouse for the spring season. Demand during the spring season follows a normal distribution with mean 1000 and standard deviation 250. Each blouse costs $30 to purchase from the wholesaler and can be sold at $80. Unsold blouses at the end-of the spring season are sold to a discount store at $15 each.
1. How many blouses should the retailer order for the spring season?
2. If the retailer wants to limit its probability of stockout to less than 15%. then what should the order quantity be?
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B). Based on the previously watched CNBC video: How Airlines Park Thousands Of Planes,
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