A seasonal fashion item is to be orders. The acquisition cost is 450. If the salvage value after the season is 150, what should be the order quantity? The probability of demand occurring is known as under:
|
Demand items
|
100
|
110
|
120
|
130
|
140
|
150
|
|
Probability
|
0.1
|
0.2
|
0.2
|
0.3
|
0.1
|
0.1
|