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Single order quantity inventory problem or Newsboy Problem: A hotel near the university always fills up on the evening before football games. History has shown
Single order quantity inventory problem or Newsboy Problem:
A hotel near the university always fills up on the evening before football games. History has shown that when the hotel is fully booked, the number of lastminute cancellations has a mean of and standard deviation of The average room rate is $ When the hotel is overbooked, the policy is to find a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel approximately $ since rooms booked on such late notice are expensive. How many rooms should the hotel overbook
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