engineering recuitment GATE ME 2023-24 Test Series Industrial Engineering Production Planning and Inventory Control Inventory Control
A newspaper boy purchases newspapers early in the morning and can not repurchase them on some day. He purchases the newspaper at Rs.8 each and sells them at Rs.12 each. If the newspaper remains unsold, he can return it for Rs. 2 each. The customer goodwill loss is expected at Rs.1.5 each. What will be the optimum quantity to be purchased? The probability of newspaper sell per day is given in the table.
| Demand | Probability |
| 10 | 0.04 |
| 15 | 0.08 |
| 20 | 0.13 |
| 25 | 0.26 |
| 30 | 0.31 |
| 35 | 0.09 |
| 40 | 0.09 |
Enter numerical value using the virtual keypad. Round off where necessary.