Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 17

A retail store must decide how many Mother's Day cards to have in stock for this year's Mother's Day. Cards must be ordered months in advance, and there is only an opportunity to order one time. The store believes that the demand for cards will be normally distributed with a mean of 750 and a standard deviation of 50. The cards cost the shop $2.00 each and will be sold for $3.00 each. Any cards remaining alter Mother's Day will be destroyed. How many cards should the retail store order for Mother's Day?