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NEWSVENDOR MODEL Johnson Electronics sells electrical and electronic components through catalogs. Catalogs are printed once every two years. Each printing run incurs a fixed price
NEWSVENDOR MODEL Johnson Electronics sells electrical and electronic components through catalogs. Catalogs are printed once every two years. Each printing run incurs a fixed price os ?a variable production cost of $ ?per catalog. Annual demand for catalogs has normal distributed; mean of ?and standard deviation of ?On average, each customer ordering a catalog generates a $ ?in sales. Assuming that Johnson wants only one printing run in each two year cycle and leftovers of the previous cycle are worthless ?how many catalogs should be printed in each run?
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