Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Exercise 17

You are the buyer for your university bookstore.One of the textbooks has a cost to you of $100 and you sell it to students for $140.Any copies of the book that you order and do not sell to students can be returned to the publisher for an average $80.credit.(Sometimes you can get full credit but sometimes a new edition is published so you get no credit).In one particular course, demand has averaged 400 books each semester, with a standard deviation of 40.What is your Target Service Level? What is your target order quantity for the course?