You are a news vendor selling Chatham Times every morning. Before you get to work, you go to the printer and buy the day's paper for $0.30 a copy. You sell a copy of Chatham Times for $1.25. Daily demand is distributed normally with mean is 275 and standard deviation = 55. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.

a.How many copies of San Pedro Times should you buy each morning?

What is the Optimal order qty

b.Based on a, what is the probability that you will run out of stock?

What is the Probability%