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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 10000 days. You have the chance to buy programs from the printer for $0.30 a copy, that you will in turn resell for $10. The demand distribution is expected to be normal with a mean = 265 and standard deviation = 53. After the game, any leftover copies will be worthless (nobody will want to remember the game). 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

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 10000 days. You have the chance to buy programs from the printer for $0.30 a copy, that you will in turn resell for $10. The demand distribution is expected to be normal with a mean = 265 and standard deviation = 53. After the game, any leftover copies will be worthless (nobody will want to remember the game). 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

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 10000 days. You have the chance to buy programs from the printer for $0.30 a copy, that you will in turn resell for $1.10. The demand distribution is expected to be normal with a mean = 265 and standard deviation = 53. After the game, any leftover copies will be worthless (nobody will want to remember the game). 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 (e.g., if the answer is 83.6%, enter 84, not .84 or 84%). Probability
Transcribed Image Text: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 10000 days. You have the chance to buy programs from the printer for $0.30 a copy, that you will in turn resell for $1.10. The demand distribution is expected to be normal with a mean = 265 and standard deviation = 53. After the game, any leftover copies will be worthless (nobody will want to remember the game). 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 (e.g., if the answer is 83.6%, enter 84, not .84 or 84%). Probability
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