4260-Assignment 2

Assignment 2 (Due on 01/11/2018)
Problem: A retail store decides to order a batch of product A from its supplier for sale for the
following 8 days (count as 1 period). Suppose an order is placed near the end of today, and this
batch of product A arrives tomorrow morning. The unit ordering (resp., selling) price is $50 (resp.,
$120). Historical data indicates the mean demand per period is 300 with a standard deviation of
40. How many to order to maximize the profit for the following 8 days?