Problem
Apharmacy would like to pre-order a new medicine that has just been approved by FDAfor people who want to lose weight. The medicine has a shelf life of 6 months. after which it is useless. The pharmaceutical company that makes this medicine (Razi Inc.) offers each participating pharmacy a revenue sharing contract with pre-orden'ng through which a bag of the medicine is sold for only $100 to the pharmacy in exchange for pharmacy to pay 50% of the revenue of sold bags pack to Ftazi. Each hag sells for $1000 at pharmacy which is collected from patients and insurance companies. The pharmacy estimates that demand over the shelf life of this medicine is normally distributed with an average of 100 bags and a standard deviation of 30 bags. It the pharmacy accepts the revenue sharing o?er, pre-orders based on Newsven-dor model and then the actual demand turns out to be 90 bags, what would be the profit loss on this medicine for the pharmacy?