Question: A bookstore considers placing a single order for a new history book. The publisher is selling the book for $70, and the bookstore plans to
A bookstore considers placing a single order for a new history book. The publisher is selling the book for $70, and the bookstore plans to sell the book 34% higher than its wholesale price. The bookstore estimates that demand over the next year has a uniform distribution with mean U(10,45). At the end of the year, the bookstore will sell unsold books to a discounter and will only get 36% of the wholesale price for each copy. What is the probability that the bookstore can satisfy demand for the book (i.e., what is optimal service level)? Please answer with a single number. Thanks!
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
