What is the cost of underestimating demand for? magazine

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Reference no: EM133621041

Assignment:

The monthly Toronto Maple Leafs Fan Magazines are printed 1 week prior to each monthly issue during the season. Attendance averages 90,000

screaming and loyal Leafs fans during the life of each issue.? Two-thirds of these fans usually buy the? magazine, following a normal? distribution, for $4 each. Unsold magazines are sent to a recycling centre that pays only 20 cents per magazine. The standard deviation is 10,000 ?magazines, and the cost to print each magazine is $2. Refer to the standard normal table

a) What is the cost of underestimating demand for each? magazine? ?(round your response to two decimal? places).

Cs = $

?b) What is the overage cost per? magazine? ?(round your response to two decimal? places)

Co=

c) How many magazines should be ordered per? game?

__________ programs should be ordered per game ?(round your response to the nearest whole? number).

d) What is the stockout risk for this order? size? (round your response to four decimal? places).

Stockout risk=

Reference no: EM133621041

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