Chris Ellis's newsstand, inside the Museum subway station in Toronto, usually sells 140 copies of The Globe and Mail each day. Chris believes the sale of the Globe is normally distributed, with a standard deviation of 12 papers. He pays 60 cents for each paper, which sells for $1.50. The Globe buys any unsold papers from him at 30 cents a piece. Help Chris determine the stockout risk (probability of stockout) if the optimal order quantity is used.

Answer rating: 100% (QA)

The optimal order quantity is the quantity that minimizes the total cost of ordering and holding inv... View the full answer