Question

A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has C

0 =$24.50 and C h =$9. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with μ=25 and σ=5. (a) What is the recommended order quantity?

Answer 1

To determine the quantities demanded and supplied at a price of $120, we need to consider the demand and supply functions. Without specific information, we can determine if a shortage or surplus exists by comparing the quantities demanded and supplied.

Step-by-step explanation:

To determine the quantities demanded and supplied at a price of $120, we need to consider the demand and supply functions. Without information about these functions, it is not possible to determine the specific quantities demanded and supplied. However, we can determine if a shortage or surplus exists by comparing the quantities demanded and supplied. If the quantity demanded is greater than the quantity supplied, a shortage exists. Conversely, if the quantity supplied is greater than the quantity demanded, a surplus exists. The size of the shortage or surplus would depend on the difference between the quantities demanded and supplied.