Question

University of Florida football programs are printed 1 week prior to each home game. Attendance averages 90, 000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $4 each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $2. Refer to the standard normal table for z-values.
What is the cost of underestimating demand for each program? C_s = $ (round your response to two decimal places).
What is the average cost per program? C_o = $ (round your response to two decimal places).
How many programs should be ordered per game? programs should be ordered per game (round your response to the nearest whole number).
What is the stockout risk for this order size? Stockout risk = (round your response to four decimal places).

Answer 1

Restocking=50 10=50 and then c_s means 600 must =50000