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Business, 24.04.2020 03:26 ammyraammirez24

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 $1.

a) What is the cost of underestimating demand for each program?
b) What is the overage cost per program?
c) How many programs should be ordered per game? n
d) What is the stockout risk for this order size?

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