(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
Wite down the expected proft and find the optimal order quantity that maximizes the expected profit.
(a) (15 points) Write down the proft as
Determine C1, C2 and C3.
3. (20 points) Find the value of a such that