A book and paper store distributes one specialized monthly magazine. When looking at the sales the last years, they have concluded that the demand for each issue of the magazine will be normally distributed with an expected sale of 250 and a standard deviation of 100. The purchase price for the magazine is $20. and the sales price is $50.The store has an agreement with a second -hand store that buys unsold magazines for $5 each. How many magazines should the store buy of each issue?

Demand D = 250 Standard deviation = 100 Purchase price = $20 Sales price = $50 Scrap price /…

Answered: A book and paper store distributes one…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.5: Introduction To @risk

Problem 20P: Use @RISK to analyze the sweatshirt situation in Problem 14 of the previous section. Do this for the...

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A book and paper store distributes one specialized monthly magazine. When looking at the sales the last years, they have concluded that the demand for each issue of the magazine will be normally distributed with an expected sale of 250 and a standard deviation of 100. The purchase price for the magazine is $20. and the sales price is $50.The store has an agreement with a second -hand store that buys unsold magazines for $5 each. How many magazines should the store buy of each issue?

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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