Question
Consider a newsvendor problem where demand is expected to be normally distributed with a mean of 1,000 units and a standard deviation of 800 units.
Consider a newsvendor problem where demand is expected to be normally distributed with a mean of 1,000 units and a standard deviation of 800 units. This is a high-margin monopoly item, with a variable production cost of $2 per unit and a sales price of $100 per unit. In addition, the producer must pay $1 to discard any unsold units. How many units should be produced?
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Business Statistics A Decision Making Approach
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
9th Edition
013302184X, 978-0133021844
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