Sales department believes that sales during the next year

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Reference no: EM131106551

Every four years, Blockbuster Publishers revises its textbooks. It has been three years since the best-selling book The Joy of Excel has been revised. At present, 2000 copies of the book are in stock, and Blockbuster must determine how many copies of the book to print for the next year. The sales department believes that sales during the next year are governed by a triangular distribution with parameters 4000, 6000, and 9000. Each copy of Joy sold during the next year brings the publisher revenue of $35. Any copies left at the end of the next year cannot be sold at full price but can be sold for $5 to a chain of bookstores. The cost of a printing of the book is $50,000 plus $15 per book printed.

a. Use simulation to help the publisher decide how many copies of Joy to print.

b. How does your answer change if 4000 copies are currently in stock?

Reference no: EM131106551

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