A newsboy sells newspapers and his goal is to maximize profit. He kept a record
ID: 337601 • Letter: A
Question
A newsboy sells newspapers and his goal is to maximize profit. He kept a record of his sales for 125 days with the following result. His ordering policy is to order an amount each day that is equal to the previous day's demand. A newspaper costs the carrier 50 cents and he sells it for $1.00. Unsold papers are returned and he receives 25 cents (for a loss of 25 cents).
Newspapers demand per day
Number
of days
15
10
16
20
17
42
18
31
19
12
20
10
Total
125
Newspapers demanded
per day
Number of Days
Probability
Cumulative Probability
15
10
0.08
0.08
16
20
0.16
0.24
17
42
0.336
0.58
18
31
0.248
0.82
19
12
0.096
0.92
20
10
0.08
1
Total
125
1.864
3.64
Use the information and random numbers given in the table below to simulate the sale of newspapers for 10 days.
Day
Demand
Random Number
Quantity Ordered
Sales
Unsatisfied Demand
Unsold Papers
1
.78
18
2
.43
3
.93
4
.87
5
.48
6
.84
7
.87
8
.27
9
.20
10
.52
12. After completing the simulation, determine his total revenue for the ten days. _____
13. After completing the simulation, determine the monetary losses that result from unmet demand and unsold papers. _____
Newspapers demand per day
Number
of days
15
10
16
20
17
42
18
31
19
12
20
10
Total
125
Explanation / Answer
A newsboy sells newspapers and his goal is to maximize profit. He kept a record of his sales for 125 days with the following result. His ordering policy is to order an amount each day that is equal to the previous day's demand. A newspaper costs the carrier 50 cents and he sells it for $1.00. Unsold papers are returned and he receives 25 cents (for a loss of 25 cents).
Newspapers demand per day
Number
of days
15
10
16
20
17
42
18
31
19
12
20
10
Total
125
Newspapers demanded
per day
Number of Days
Probability
Cumulative Probability
15
10
0.08
0.08
16
20
0.16
0.24
17
42
0.336
0.58
18
31
0.248
0.82
19
12
0.096
0.92
20
10
0.08
1
Total
125
1.864
3.64
Use the information and random numbers given in the table below to simulate the sale of newspapers for 10 days.
Day
Demand
Random Number
Quantity Ordered
Sales
Unsatisfied Demand
Unsold Papers
1
.78
18
2
.43
3
.93
4
.87
5
.48
6
.84
7
.87
8
.27
9
.20
10
.52
12. After completing the simulation, determine his total revenue for the ten days. _____
13. After completing the simulation, determine the monetary losses that result from unmet demand and unsold papers. _____
Newspapers demand per day
Number
of days
15
10
16
20
17
42
18
31
19
12
20
10
Total
125
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.