You are a vendor selling programs in front of the stadium of a certain pro football...
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You are a vendor selling programs in front of the stadium of a certain pro football team that has not had a playoff win in over 11435 days. You have the chance to buy programs from the printer for $0,25 a copy, that you will in turn resell for $1.25. The demand distribution is expected to be normal with a mean=255 and standard deviation 51. After the game, any leftover copies will be worthless (nobody will want to remember the game). I a. How many programs should you buy? Round your z value to 2 decimal places (e.g. 0.58) and your final answer to the nearest whole number. Optimal order quantity b. Based on the optimal quantity (before rounding), what is the approximate probability that you will run out of stock? Hint: Think about the service level that you found for part a to identify the optimal quantity (before rounding), and then think about the relationship. between that service level and the probability of running out of stock (don't overthink this by adjusting for the fact that you rounded your answer for part a). Round your answer to the nearest whole percent (eg, if the answer is 83.6%, enter 84, not .84 or 84%). Probability You are a vendor selling programs in front of the stadium of a certain pro football team that has not had a playoff win in over 11435 days. You have the chance to buy programs from the printer for $0,25 a copy, that you will in turn resell for $1.25. The demand distribution is expected to be normal with a mean=255 and standard deviation 51. After the game, any leftover copies will be worthless (nobody will want to remember the game). I a. How many programs should you buy? Round your z value to 2 decimal places (e.g. 0.58) and your final answer to the nearest whole number. Optimal order quantity b. Based on the optimal quantity (before rounding), what is the approximate probability that you will run out of stock? Hint: Think about the service level that you found for part a to identify the optimal quantity (before rounding), and then think about the relationship. between that service level and the probability of running out of stock (don't overthink this by adjusting for the fact that you rounded your answer for part a). Round your answer to the nearest whole percent (eg, if the answer is 83.6%, enter 84, not .84 or 84%). Probability
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a To find the optimal quantity to buy we need to use the newsvendor f... View the full answer
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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