題組內容

4. (40 points) W Bookstore purchases textbooks at wholesale price is $225 per item, and the selling price is $350 per item. Any unsold books are saivaged at S100. Let a denote the order quantity and d denote the demand.

(b) (25 points) Assumne that the demand has an normal distribution with mean 12,000 and standard deviation 200; the probability density function for a normal distribu- tion with mean u and varianceσ2 is 6176244133dd1.jpg
Wite down the expected proft and find the optimal order quantity that maximizes the expected profit.