newsboy
The owner of a newsstand wants to determine the number of Canada Post that must be stocked at the start of each day. It costs 30 cents to buy a copy, and the owner sells it for 75 cents. The sale of the newspaper typically occurs between 7:00 and 8:00a.m. Newspapers left at the end of the day are recycled for an income of 5 cents a copy. a) Compute the overage and shortage cost.; b) How many copies should the owner stock every moming in order to minimize the total cost (or maximize the profit), assuming that the demand for the day can be approximated by: A normal distribution with mean 300 copies and standard deviation 20 copies.: e) Answer the same question in part(b) if the demand is defined by a discrete pdf as: Demand (D) 200 220 300 320 D 0.1 0.2 0.4 0.2 0.1 d) What is the probability of overage for the owner? e) What is the probability of shortage for the owner? 340 The owner of a newsstand wants to determine the number of Canada Post that must be stocked at the start of each day. It costs 30 cents to buy a copy, and the owner sells it for 75 cents. The sale of the newspaper typically occurs between 7:00 and 8:00 a.m. Newspapers left at the end of the day are recycled for an income of 5 cents a copy. a) Compute the overage and shortage cost.; b) How many copies should the owner stock every moming in order to minimize the total cost (or maximize the profit), assuming that the demand for the day can be approximated by: A normal distribution with mean 300 copies and standard deviation 20 copies.; c) Answer the same question in part(b) if the demand is defined by a discrete pdf as: Demand (D) 200 220 300 320 ID 0.1 0.2 0.4 0.2 0.1 d) What is the probability of overage for the owner? e) What is the probability of shortage for the owner? 340 The owner of a newsstand wants to determine the number of Canada Post that must be stocked at the start of each day. It costs 30 cents to buy a copy, and the owner sells it for 75 cents. The sale of the newspaper typically occurs between 7:00 and 8:00a.m. Newspapers left at the end of the day are recycled for an income of 5 cents a copy. a) Compute the overage and shortage cost.; b) How many copies should the owner stock every moming in order to minimize the total cost (or maximize the profit), assuming that the demand for the day can be approximated by: A normal distribution with mean 300 copies and standard deviation 20 copies.: e) Answer the same question in part(b) if the demand is defined by a discrete pdf as: Demand (D) 200 220 300 320 D 0.1 0.2 0.4 0.2 0.1 d) What is the probability of overage for the owner? e) What is the probability of shortage for the owner? 340 The owner of a newsstand wants to determine the number of Canada Post that must be stocked at the start of each day. It costs 30 cents to buy a copy, and the owner sells it for 75 cents. The sale of the newspaper typically occurs between 7:00 and 8:00 a.m. Newspapers left at the end of the day are recycled for an income of 5 cents a copy. a) Compute the overage and shortage cost.; b) How many copies should the owner stock every moming in order to minimize the total cost (or maximize the profit), assuming that the demand for the day can be approximated by: A normal distribution with mean 300 copies and standard deviation 20 copies.; c) Answer the same question in part(b) if the demand is defined by a discrete pdf as: Demand (D) 200 220 300 320 ID 0.1 0.2 0.4 0.2 0.1 d) What is the probability of overage for the owner? e) What is the probability of shortage for the owner? 340
