What is the optimal order quantity

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Reference no: EM13221384

Flextora Inc sells a product called SKU561. This is a seasonal product and only sold in the spring. Seasonal demand is normally distributed with mean 10,000 and standard deviation 1,000. The selling price is $80 per unit and the purchase cost is $20/unit. All unsold units are destroyed at no cost.

(a) What is the optimal order quantity?
(b) What is the expected fill rate based on your answer in part a?

Reference no: EM13221384

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