1-A grocer purchases grapes for $2.20 per pound and sells them for $4.92 per pound. At the end of the sales cycle, leftover grapes are sold for a closeout price of $1.16 per pound. The grocer purchases 10,080 pounds of grapes. Expected demand is normally distributed with a mean of 8,064 pounds and a standard deviation of 1,008.

what is the grocer's expected profit ?

2-Demand for a product is normally distributed with a mean of 31,000 and a standard deviation of 1,900. The newsvendor wants to achieve a stockout probability of 0.11 or less.

what is the minimum number of units to achieve this goal?

Answer rating: 100% (QA)

To calculate the grocers expected profit we need to consider the cost revenue and closeout revenue a... View the full answer