The campus bookstore wants to figure out the optimal number

of an operations management textbook to buy for the upcoming semester.

The cost and price is as follows:

Cost$/$unit $=$ $ $109\mathrm{.}00$

Selling price$/$unit $=$ $ $145\mathrm{.}50$

At the end of the semester, the leftover books can be sold back to the publisher

at cost less $10\%.$ That is$,$ they get $90\%$ of the cost back.

Put your answers here:

a$.$ What is the shortage cost per unit?

b$.$ What is the excess cost per unit?

c$.$ What is the optimal service level?

d$.$ The bookstore has historical data for this textbook for $30$ semesters. Create a cumulative frequency table of the number of textbooks sold per semester. See example posted on Canvas.

Paste your cumulative frequency table to the right above $($see note above$)$

e$.$ What is the optimal number of books to buy for this semester? Use the newsvendor

model for discrete demand.