Profit from selling parka  55

Cost of overstocking  5

Probability of Probability of
Demand
Probababi demand demand being
lity being this much or greater than this
[100s] much
less
400 0.01 0.01 0.99
500 0.02 0.03 0.97
600 0.04 0.07 0.93
700 0.08 0.15 0.85
800 0.09 0.24 0.76
900 0.11 0.35 0.65
1000 0.16 0.51 0.49
1100 0.20 0.71 0.29
1200 0.11 0.82 0.18
1300 0.10 0.92 0.08
1400 0.04 0.96 0.04
1500 0.02 0.98 0.02
1600 0.01 0.99 0.01
1700 0.01 1 0
Stock level 1400

Sold Overstock Understock Sales profit overstock cost Profit

400 1000 0 22000 5000 17000
500 900 0 27500 4500 23000
600 800 0 33000 4000 29000
700 700 0 38500 3500 35000
800 600 0 44000 3000 41000
900 500 0 49500 2500 47000
1000 400 0 55000 2000 53000
1100 300 0 60500 1500 59000
1200 200 0 66000 1000 65000
1300 100 0 71500 500 71000
1400 0 0 77000 0 77000
1400 0 100 77000 0 77000
1400 0 200 77000 0 77000
1400 0 300 77000 0 77000

54140
Profit from selling parka  55
Cost of overstocking  5

Probability of Probability of
Demand
Probababili demand demand being
ty being this greater than this
[100s] much
much or less
400 0.01 0.01 0.99
500 0.02 0.03 0.97
600 0.04 0.07 0.93
700 0.08 0.15 0.85
800 0.09 0.24 0.76
900 0.11 0.35 0.65
1000 0.16 0.51 0.49
1100 0.20 0.71 0.29
1200 0.11 0.82 0.18
1300 0.10 0.92 0.08
1400 0.04 0.96 0.04
1500 0.02 0.98 0.02
1600 0.01 0.99 0.01
1700 0.01 1 0
 1300
Sold Overstock Understock Sales profit overstock cost
400 900 0 22000 4500

500 800 0 27500 4000

600 700 0 33000 3500

700 600 0 38500 3000

800 500 0 44000 2500

900 400 0 49500 2000

1000 300 0 55000 1500

1100 200 0 60500 1000

1200 100 0 66000 500

1300 0 0 71500 0

1300 0 100 71500 0

1300 0 200 71500 0

1300 0 300 71500 0

1300 0 400 71500 0

Profit
17500
23500
29500
35500
41500
47500
53500
59500
65500
71500
71500
71500
71500
71500
54160
 0.714286
0.833333

168

0.818182
0.565949
1786.9
273
81 223.3636 304.3636

0.0034 0.34
5340.5

5000 -714 -1671.43 1671.429 4286

121.4286 102 223.4286

670.2857
4680 4009.714