Question: Assume that The Washington Post operates a vertically integrated supply chain (i.e., the WP produces and sells directly to the customers). If the production cost

Assume that The Washington Post operates a vertically integrated supply chain (i.e., the WP produces and sells directly to the customers). If the production cost of each paper is $0.25, the retail price is $1 and the daily demand is normally distributed with mean 500 and standard deviation of 10 then:

What is the optimal quantity of papers that WP should stock?

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