Right number of jackets

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Question: In this problem, we are helping Jim Roberts who runs a winterwear store to decide on the optimal inventory. Jim's flagship product is the Cool Face winter jacket. Jim has contracted with HK Textiles in Thailand to produce the Cool Face jackets. With delivery and the US duty on foreign made textiles, each jacket costs about $100 to purchase. Jim must place his order in mid August for the production, allowing time for the jackets to reach his outlet partners by roughly Halloween. This lead-time restricts Jim to place only one order for the entire season. His small business is a source of income and pride for him. He cannot afford to over order and sit on excess inventory or bear to see his quality jackets liquidated at a deep discount in the late spring. At the same time, he does not like to have his stores run out of jackets and lose customers to the competition. He must resolve this dilemma by ordering just the right number of jackets. The six million dollar question is: how many?

Reference no: EM133250592

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