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Weekly demand for the Muscat Star magazine is normally distributed with a mean of 11.73 and...


Weekly demand for the Muscat Star magazine is normally distributed with a mean of 11.73 and a standard deviation of 4.47. The magazines are sold for OMR 0.750 and bought for OMR 0.250. The unsold copies can be salvaged for OMR 0.100.

1. Find the order quantity that minimizes the expected total cost.
2. What would be the order up-to point if the shop receives 6 copies of the magazine from another supplier at the beginning of the week?
3. Would the base stock level remain the same if 20 copies of the magazine are made available?

Math   Statistics-And-Probability   
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