In Example 4b, suppose that the department storeincurs an

Chapter 4, Problem 4.34

(choose chapter or problem)

In Example 4b, suppose that the department storeincurs an additional cost of c for each unit of unmet demand. (This type of cost is often referred to asa goodwill cost because the store loses the goodwillof those customers whose demands it cannotmeet.) Compute the expected profit when thestore stocks s units, and determine the value of sthat maximizes the expected profit.

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