James Calender is the buyer for "Joe's Radio Hut", a local electronics chain that has developed a loyal customer base with its quality service and competitive pricing. Due to the short selling lives of electronics products, James has only a single opportunity to order the new GO multifunction photo printer and hair dryer. The item sells for $139.24 and the per unit cost is $128.93. Any units remaining at the end of the season must be disposed of at a cost of $18.04. Demand for the item is believed to be normally distributed with a mean 605 and standard deviation 145.2. What is the cost of shortage? (specify answer to 2 decimal places) What is the critical fractile? (specify answer to 3 decimal places) What is the cost minimizing order quantity? (specify answer as a whole number)
James Calender is the buyer for "Joe's Radio Hut", a local electronics chain that has developed a loyal customer base with its quality service and competitive pricing. Due to the short selling lives of electronics products, James has only a single opportunity to order the new GO multifunction photo printer and hair dryer.
The item sells for $139.24 and the per unit cost is $128.93. Any units remaining at the end of the season must be disposed of at a cost of $18.04. Demand for the item is believed to be
What is the cost of shortage? (specify answer to 2 decimal places)
What is the critical fractile? (specify answer to 3 decimal places)
What is the cost minimizing order quantity? (specify answer as a whole number)
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