A supplier manufactures a product at cost m = $40 and sells it to a retailer at wholesale price c = $100. The retailer sells this product to consumers at retail price p = $200. The replenishment lead time for this product is long relative to the selling season, so the retailer only has one opportunity to stock the product. Demand for the product is normally distributed with a mean of 1000 units and a standard deviation of 400 units. Units unsold at the end of the season are salvaged at price v = $15.