You are the buyer for your university bookstore. One of the textbooks has a cost

Question

You are the buyer for your university bookstore. One of the textbooks has a cost to you of $165 and you sell it to students for $330. In this case, however, you cannot salvage any value from copies that do not sell because a new edition is published every semester. Demand for this text averages 145 copies each semester, with a standard deviation of 23 copies. Use Appendix A.

How many should you order each semester? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

Emerson should order _______ units

Explanation / Answer

Cso = 330 - 165 = 165

Cos = 165

TSL = 165/165+165 = 0.5

At 50% service level requires 0 standard deviatiions

order quantity = 145 + 0 = 145 units

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