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Ned runs a newsstand that sells the daily newspaper. The newspaper focuses on current events, coverage of financial markets, and weather reports. Each day, the
Ned runs a newsstand that sells the daily newspaper. The newspaper focuses on current events, coverage of financial markets, and weather reports. Each day, the newspaper publisher prints a new version of the paper, and the stories are different from day to day. Ned sells each paper for $4 and buys papers wholesale for $1 apiece. Each time Ned places an order from his supplier, the supplier charges Ned a $20 delivery fee. The supplier requires orders to be placed 24 hours in advance of delivery. The newsstand business is subject to petty theft, and Ned estimates that 1% of the newspapers that he stocks over the course of a year are stolen. Ned has determined that daily demand for newspapers at his stand is distributed uniformly over the interval [0, 100]. Which of the following tools would you use to determine Ned's optimal inventory policy for newspapers? Group of answer choices EOQ Model Continuous Review Policy Newsvendor Model
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