Find the optimal number of papers to buy


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Q: A newspaper stand purchases newspapers for $0.55 and sells them for $0.75. The shortage cost is $0.75 per newspaper (because the dealer buys papers at retail price to satisfy shortages). The holding cost is $0.01 per newspaper left at the end of the day. The demand distribution is a uniform distribution between 50 and 75. Find the optimal number of papers to buy.

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Operation Management: Find the optimal number of papers to buy
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