Essay
The Corner Newsstand has demand for a certain weekly magazine that can be approximated by a Poisson distribution with a mean of 9.0.Magazines are purchased for $1.50.
If unsold copies must be destroyed and copies sell for $4.00 each,what is the optimum stocking level and its effective service level?
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Ce = $1.50 Cs = $4.00 - 1.50 = $2.50 SL ...View Answer
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