Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 9

A local bookstand believes that the demand for the Olympic edition of a sports magazine is normally distributed with a mean of 1200 and a standard deviation of 200. Each copy of the magazine costs the bookstand SI.50 per copy, and the bookstand will sell the issue for $5.00. Following the Olympic Games, there will be no demand for the magazine, and all leftover copies will be recycled because they will have no salvage value. What is the optimal number of copies of the Olympic edition that the bookstand should order?