A newspaper vendor sees demand variability for the news papers between 80-100 / day The vendor buys
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Question:
A newspaper vendor sees demand variability for the news papers between 80-100 / day
The vendor buys the newspapers for 1$ for a pack of 5 newspapers. The vendor is able to sell the newspapers for $1/ newspaper.
Any newspaper that is unsold is collected back by the printing agency and the vendor receives 1 cents for every unsold paper.
What is the service level the vendor should aim for? Round off to one decimal point.
Note: There is no minimum or batch size for the vendor to buy newspapers, meaning the vendor can buy in multiples of 1.
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