Business, 02.07.2021 17:10 angelcat9137

A production run incurs a fixed cost of $10,000 plus a variable cost $15 per book printed. Books are sold for $130 per copy. Any demand that cannot be met incurs a penalty cost of $20 per book, due to the loss of goodwill. Up to 500 of any leftover books can be sold to a discount bookstore for $35 per book. The publisher is interested in maximizing expected profit. The following print run sizes are under consideration: 0 (no production run) to 16000 in increments of 2000. The publisher wants to determine the size of the print run through simulation. (That is, the publisher wants to determine how many copies of the current edition should be printed before the new edition comes out.)

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A production run incurs a fixed cost of $10,000 plus a variable cost $15 per book printed. Books are...

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