Compute the service level demand for the magazine, Operation Management

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Compute the service level demand for the magazine

Discuss the below:

Q: A news-stand buys a weekly magazine from a publisher once every week at $3 per copy. It sells the magazine at $5 per copy. Unsold copies are sold to a salvage company at $1 per copy. The weekly demand for the magazine is normally distributed with mean of 3000 and std dev. Of 100.

Find:

a) The service level

b) Weekly order quantity.

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Operation Management: Compute the service level demand for the magazine

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Operation Management: Compute the service level demand for the magazine

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