V16 No. of Books order (n) 15 Statement Showing Computation of Profit No. of Books sold in 20 years *Net Profit() (n* 20 - Books unsold) 15 x 20 = 300 76000 16 x 20 - 2 = 318 6300 (318 x 20) - 2 x 30 (17 x 20) - 7 = 333 36450 (333 x 20)-7X 30 (18 x 20) - 18 6300 1342 x 20) - 18 x 30 Average Profit/Year (Profit + 20) 2300 3315 16 17 3322.5 18 2315 * Net Profit = No. of books sold * ? 20 - No. of books unsold *? 30 Selling price/book = ? 80. Cost/book = ? 60 Profit/book = 80 - 60 = ? 20 Selling price of any unsold book = 2 30 Loss incurred/unsold book = 260-230 = 2 30 Since profit is maximum for 17 books order, the optimal policy is to order 17 books per year. 0.20 illustration 15. A Small retailer has studied the weekly receipts and payments over the past 200 weeks and has developed the following set of information: Weekly Receipts Probability Weekly Payments Probability (R) 3000 4000 0.30 5000 6000 7000 0.40 8000 0.20 12000 0.10 10000 0.10 Using the following set of random numbers, simulate the weekly pattern of receipts and payments for the 12 weeks of the next quarter, assuming further that the beginning bank balance is 78000. What is the estimated balance at the end of the 12 weekly period? What is the highest weekly balance during the quarter? What is the average weekly balance for the quarter? 0.30 0.40 Random Numbers For Receipts 03 91 38 55 17 46 32 43 69 72 24 22 For payments 61 96 30 32 03 88 48 28 88 18 71 99 According to the given information, the random number interval is assigned to both the receipts and the payments