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8 . Case - Daily Newspaper A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they
Case Daily Newspaper
A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $ per unit and sells for $ per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $ per unit. Assume that daily demand is approximately normally distributed with and
Question
a What is your recommended daily order quantity for the coffee shop? Round your answer to the nearest integer.
b What is the probability that the coffee shop will sell all the units it orders? Round your answer to four decimal places.
c In problems such as these, why would the supplier offer a rebate as high as $ For example, why not offer a nominal rebate? Find the recommended order quantity at per unit. Round your answer to the nearest integer.
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