You have been placed in charge of running a small store that operates only on weekdays. The store has one hot seller that generates most of your profits. This item costs
$10 per unit to procure. You need to place orders weekly each Saturday and the items are received on Sunday evenings, ready for sale on Monday.
Each item sells for
$25 per unit. Any items not sold during the week must be salvaged on Saturday for
$5 per unit; these items cannot be sold the folllowing week. You suspect that weekly demand is independent across weeks and has a normal distribution. You start the game by placing an order for Week 1; you don't have access to historical data but have been suggested to order
100 units.
Your goal is to select the optimal number of units to order each week to maximize profits over 15 weeks.
You should consider the estimated information in your analysis and you may also look at the normal distribution plot.
