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Suppose the programs for a Lions home game cost $2.00 to print and sell for $5.00. Program demand is normally distributed with a mean of 30,000 and a standard deviation of 2000
a. Based on the shortage cost and the overage cost, how many programs should be printed?
b. Suppose the service level for program sales is 95%. i. How many programs should be printed? ii. What is the implied shortage cost?
c. Construct a graph showing the number of programs printed and the implied shortage cost for service levels from 90% to 99% in increments of 1%.
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