Question: Question 2 : ( 5 points ) Inventory Management ( Single Period Inventory Model ) Newspaper Boy Problem: Daily demand for a newspaper is independent

Question 2: (5 points) Inventory Management (Single Period Inventory Model)
Newspaper Boy Problem: Daily demand for a newspaper is independent and identical. Demand can be characterized as the following probability distribution:
\table[[Demand in units,Probability],[10,0.2],[20,0.2],[30,0.2],[40,0.2],[50,0.2]]
The cost of the newspaper is $1. The newspaper is sold to customers for a price of $1.40 each. At the end of the day, any unsold newspapers have to be returned to the publisher and yield a revenue of $0.25 per copy.
A) How many newspapers will be optimal to be inventoried at the start of the day, so the expected profit is maximum?
B) What are the expected (average) profits for each stock (inventory) level? Simulate for 15 days and draw your conclusions. Use only the random numbers provided to generate demand.
 Question 2: (5 points) Inventory Management (Single Period Inventory Model) Newspaper

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