Question $10$

NEWS$-2080$

For any intermediate calculations use $4$ significant figures.

The Johnson Shoe Company buys shoes for $$50$ per pair and sells them for $$80$ per pair. If they are

out of stock, the buyer purchases the shoe elsewhere and there is a loss of goodwill of $$30.$ Monthly

demand is normally distributed with $=20$ and $=5.$ The Johnson Shoe Company uses a $25\%$

annual interest rate to determine holding costs.

Note: If when looking up ${}^{-1}(Z),$ you get an answer that is between $2$ levels, pick the higher

level. For example, if you are looking up$,{}^{-1}(0\mathrm{.}6),$ you see it falls between $0\mathrm{.}25$ and $0\mathrm{.}26,$ use

$0\mathrm{.}26.$

How many shoes should the Johnson Shoe Company buy?

$c_o=$$

Round up answers to $1$ Decimal

$c_u=$$

Round up answers to the next number

$F(Q^{**})=$

Round up answers to $4$ Decimals

$Q=$

units Round up answers to the next number

Answer $1$:

$1\mathrm{.}04$

Answer $2$:

$60$

Answer $3$:

$0\mathrm{.}5403$

Answer $4$: