The demand for next years wildlife calendar at a bookstore is assumed to be normally distributed with

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The demand for next year’s wildlife calendar at a bookstore is assumed to be normally distributed with a mean of 500 and a standard deviation of 75. Each calendar costs the bookstore $5.50 each and will be sold for $12.50 each. Any calendars remaining for sale after Christmas will be discounted and sold for $1.00 each. The bookstore believes that any calendar remaining to be sold after Christmas can be cleared at the $1.00 price. How many wildlife calendars should the bookstore stock if it wants to maximize its expected profit from wildlife calendars?
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Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

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