Dilbert’s Department Store is trying to determine how many Hanson T-shirts to order. Currently the shirts are sold for $21.00, but at later dates the shirts will be offered at a 10% discount, then a...

Dilbert’s Department Store is trying to determine how many Hanson T-shirts to order. Currently the shirts are sold for $21.00, but at later dates the shirts will be offered at a 10% discount, then a 20% discount, then a 40% discount, then a 50% discount, and finally a 60% discount. Demand at the full price of $21.00 is believed to be normally distributed with mean 1800 and standard deviation 360. Demand at various discounts is assumed to be a multiple of full price demand.


These multiples, for discounts of 10%, 20%, 40%, 50%, and 60% are, respectively, 0.4, 0.7, 1.1, 2, and 50. For example, if full-price demand is 2500, then at a 10% discount, customers would be willing to buy 1000 T-shirts. The unit cost of purchasing T-shirts depends on the number of T-shirts ordered, as shown in the file P11_36.xlsx. Use simulation to see how many T-shirts Dilbert’s should order. Model the problem so that Dilbert’s first orders some quantity of T-shirts, and then discounts deeper and deeper, as necessary, to sell all of the shirts.