Question: b) what is the overage cost per program ? c) how many programs should be ordered per game ? d) what is the stockout risk
b) what is the overage cost per program ?
c) how many programs should be ordered per game ?
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 75,000 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 5,000 programs, and the cost to print each program is $2. Refer to the standard normal table for z-values. a) What is the cost of underestimating demand for each program? C = $ (round your response to two decimal places)
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