Assignment:
You work for a manufacturing firm producing items with a limited time window for sale. Items are sold by a distributor facing uncertain demand over the time window, which we model by a normal distribution with expected value 10,000 and standard deviation 2500. The distributor decides how many items to order using a newsvendor model. From the distributors perspective, each item costs $10 and is sold at the recommended price of $14. Unsold items are bought back by the manufacturer. Assume that the manufacturer would like to see at least 15,000 items on the shelves (in order to promote her brand name); at what price should she be willing to buy unsold items back?
Provide complete and step by step solution for the question and show calculations and use formulas.