A newspaper stand purchases newspapers

Reference no: EM131105164

A newspaper stand purchases newspapers for $0.36 and sells them for $0.50. The shortage cost is $0.50 per newspaper (because the dealer buys papers at retail price to satisfy shortages). The holding cost is $0.002 per newspaper left at the end of the day. The demand distribution is a uniform distribution between 200 and 300. Find the optimal number of papers to buy.

Reference no: EM131105164

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