A seafood supplier makes a single order for fresh king crab…
A seafood supplier makes a single order for fresh king crab shipments ahead of a culinary festival. Each case costs $200 and sells for $500. Leftover cases cannot be sold and must instead be removed by a commercial waste service at a disposal cost of $40 per case. Demand is normally distributed with a mean of 500 cases and a standard deviation of 80 cases. What is the optimal order quantity Q*?
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