You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you
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Question:
You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the days paper for $ a copy. You sell a copy of the San Pedro Times for $ Daily demand is distributed normally with mean and standard deviation At the end of each morning, any leftover copies are worthless and they go to a recycle bin.
How many copies of the San Pedro Times should you buy each morning?
Note: Use Excel's NORM.SINV function to find the z value. Round your z value and service level to decimal places and final answer to the nearest whole number.
Based on a what is the probability that you will run out of stock?
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