He must decide how many copies to order of a new book power


Dan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power and Self Destruction, an expose on a famous politician's lurid affairs. Interest in the book will be intense at first and then fizzle quickly as attention turns to other celebrities. The book's retail price is $21, and the wholesale price is $11. The publisher will buy-back the retailer's leftover copies at a full refund, but McClure Books incurs $3 in shipping and handling costs for each book returned to the publisher. Dan believes his demand forecast can be represented by a Normal distribution with mean 200 and standard deviation 60.

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