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Slade Sports sells a type of ski jacket which sells only during a 6-month winter selling season has a
demand forecast of 500 with a standard deviation σ = 100.
The cost to procure the jacket from the supplier in China is $60.00.
Slade Sports sells the jacket for $100.00
The salvage value is $30.00
Slade Sports has only one ordering opportunity before the winter selling season.
a) What is the underage and overage cost?
b) What is the optimal (profit-maximizing order quantity)?
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