The shop would like to determine how many shirts should be


A clothing shop is planning to sell a new type of shirt in Hong Kong during the 2016 Christmas season, which is exclusively designed for Christmas 2016. The shop needs to place an order to the franchised retailer in France. The purchase price is $27.50. The selling price in Hong Kong is $160.00. After the Christmas season, the shop will be able to sell all the unsold shirts at a discounted price of $20.00 each. The shop would like to determine how many shirts should be ordered now in the following two circumstances:

Circumstance 1: The customer demand for the shirt in Hong Kong is forecasted to follow an exponential distribution with mean 150.

Circumstance 2: The customer demand for the shirt in Hong Kong is projected to follow a uniform distribution with the parameters [50, 250].

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Operation Management: The shop would like to determine how many shirts should be
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