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The Corner Newsstand Has Demand for a Certain Weekly Magazine

Question 148

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The Corner Newsstand has demand for a certain weekly magazine that can be approximated by a Poisson distribution with a mean of 9.0. Magazines are purchased for $1.50. If unsold copies must be destroyed and copies sell for $4.00 each, find the optimum stocking level.

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Ce = $1.50 Cs = $4.00 - 1.50 = $...

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