Question

Happy Henry's car dealer sells an imported car called the EX123. Once every three months, a...

Happy Henry's car dealer sells an imported car called the EX123. Once every three months, a shipment of the cars is made to Happy Henry's. Excess demands are back-ordered from one three-month period to the next, buy have a good-will loss cost of $200. From experience, it appears that the demand for the EX123 is normally distributed with a mean of 50 and a variance of 36. The cost of holdng an EX123 for three months is $50. How many cars should Happy Henry's be purchasing every three months?

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