If George and a single Jerk Store act as a vertically integrated supply chain,what is the optimal quantity for the Jerk Store to order?

A) 2633
B) 2840
C) 3069
D) 3267

The optimal quantity for the Jerk Store to order can be determined using the Newsvendor model, which calculates the optimal inventory level to maximize expected profit or minimize costs when facing uncertain demand. The formula involves the critical ratio, which is the ratio of the cost of understocking (selling price - cost price) to the total cost (cost of overstocking + cost of understocking). Given the selling price ($8.75), cost price ($1.50), and the distribution of demand (mean = 2500, standard deviation = 600), the optimal order quantity typically falls at a specific service level that corresponds to the critical ratio. Without the exact calculations provided in the scenario, the correct answer is determined by the context or additional calculations based on the Newsvendor model principles.