Fearless Fred, the friendly founding father of door-to-door furniture vending is planning a blitz sale on Raleigh, NC. He plans to set up a tent on the corner at Crabtree Valley Mall. His salesmen will go door-to-door selling the universal vibrating and reclining, sofa and hide-a-bed, an all-in-one product at a cost of $700.00 each. Fred has this splendid contraption manufactured in a plant in Lizard Lick, NC for a total cost of $250.00 each (shipping & handling included). This price is contingent on a single order delivered just prior to the blitz sale. Market surveys indicate that the expected market in Raleigh are 450 units. The uncertainty of demand indicates demand is Normally distributed with standard deviation o=75. There is no salvage cost (or value) for units left at the end of the sale (excess units will be given to the Vietnam Veterans Pick-Up Service for their second hand store). Fred could care less about any goodwill loss if demand exceeds supply since he will not come back to Raleigh for at least 3 years. How many units should Fred order?
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