Question: ANSWER C AND D BELOW PLEASE!!!!!!!!!!!!!!! (d) What is the stockout risk for this order size? University of Florida football programs are printed 1 week
ANSWER C AND D BELOW PLEASE!!!!!!!!!!!!!!!
(d) What is the stockout risk for this order size?
University of Florida football programs are printed 1 week prior to each home game. Attendance averages 90,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $5 each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 10,000 programs, and the cost to print each program is $1. Refer to the standard normal table for z-values. a) What is the cost of underestimating demand for each program? Cs=$(roundyourresponsetotwodecimalplaces). b) What is the overage cost per program? C0=$.9(roundyourresponsetotwodecimalplaces). c) How many programs should be ordered per game? programs should be ordered per game (round your response to the nearest whole number)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
