Answer:
Total number of copies that buy each morning is Q = 357.96
Explanation:
Given Data:
cost of per copy = $0.30
Buying cost for paper =$1.50
standard deviation = 57
mean = 285
[tex]service\ level = \frac{ profit}{profit + per\ copy\ cost}[/tex]
[tex]service\ level = \frac{1.50-0.30}{(1.50-0.30 )+0.30}[/tex]
service level = 0.80
z value for 80% is 1.28
Therefore total number of copies calculated as
[tex]Q = \sigma z + \mu[/tex]
[tex]Q = 1.28\times 57 +285[/tex]
Q = 357.96
