A supplier produces a product at per unit cost $35 and sells it to a retailer at the wholesale price $75. The retailer decides how many units order (q) before the sales season. The demand of customers is normally distributed with mean 250 and standard deviation of 125. The retail price is $115 and each unit of leftover inventory has salvage value of $25. Which of the following statements is false?
The retailer should order less than 250 units
If the wholesale price increases from $75 to $85, the retailer would order more than 250 units
If the retailer price increases from $115 to $135, the retailer would order more than 250 units
If the wholesale price decreases from $75 to $35, the total profit earned in the supply chain would be maximized
