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Anthropologie is considering the sales of a new sweater for the next winter season. The sweater will be in sale for only one season. The company has plans to sell each sweater at $135, and it purchases the sweater from its supplier at $70. The company knows that it can salvage any leftover sweaters at $45. Based on the experience of previous seasons, experts at the company agree to use the following discrete probability distribution to represent the demand:
DemandProbability
4,0000.10
5,0000.15
6,0000.25
7,0000.20
8,0000.15
9,0000.15
The target service is__%.
What is the optimal order quantity based on this information, i. e., how many sweaters should Anthropologie order from its supplier?
a. 5000.
b. 8000.
c. 9000.
d. 4000.
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Answers: 3
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