Example L.L.Bean Cost of the products c=45 ▣Retail price pa=$1O0 Discounted price =$50 Holding and transportation cost for season =$10 Salvage value s=50-10=$40 The profit of each sold parkas =p-c=$100-45=55 The loss of each discounted parkas c-s=5 Cost of Overstocking: Co=c-s=$5 Cost of Understocking:C=p-c=$55 SEIEE AU406 9+ - SEIEE AU406 9  Cost of the products c=$45  Retail price p= $100  Discounted price = $50  Holding and transportation cost for season = $10  Salvage value s= 50-10 =$40  The profit of each sold parkas =p-c= $100- $45=$55  The loss of each discounted parkas = c-s =$5 Example L. L. Bean Cost of Overstocking: Cost of Understocking: