S.No.

Sold For Day ProbabilityCummulative Probability

1 20 0.1 0.1
2 30 0.15 0.25
3 40 0.2 0.45
4 50 0.25 0.7
5 60 0.2 0.9
6 70 0.1 1

No. of Stamps after replesihment 230

Replenishment cost $4
Profit on each statement $0.04

Answer

After analyzing all the replensihment cycle for 3 days, 4 days, 5 days
and 6 days the total profit per day are as 0.3, 0.7, 0.86 and 0.68.
Days Random No. Sales No. of Stamps Remaining Stock Profit Replenishment Cost Daily Profit
1 0.25 30 200 1.2 4 -2.8
2 0.35 40 160 1.6 0 1.6
3 0.23 30 130 1.2 0 1.2
4 0.11 30 200 1.2 4 -2.8
5 0.45 40 160 1.6 0 1.6
6 0.65 50 110 2 0 2
7 0.79 50 180 2 4 -2
8 0.89 60 120 2.4 0 2.4
9 0.67 50 70 2 0 2
10 0.44 40 190 1.6 4 -2.4
11 0.34 40 150 1.6 0 1.6
12 0.45 40 110 1.6 0 1.6
13 0.56 50 180 2 4 -2
14 0.67 50 130 2 0 2
15 0.87 50 80 2 0 2
16 0.47 50 180 2 4 -2
17 0.57 50 130 2 0 2
18 0.36 40 90 1.6 0 1.6
19 0.25 30 200 1.2 4 -2.8
20 0.12 30 170 1.2 0 1.2
Total Profit 6

Total Profit per day 0.3

Days Random No. Sales No. of Stamps Remaining Stock Profit Replenishment Cost Daily Profit
1 0.25 30 200 1.2 4 -2.8
2 0.35 40 160 1.6 0 1.6
3 0.23 30 130 1.2 0 1.2
4 0.11 30 100 1.2 0 1.2
5 0.45 40 190 1.6 4 -2.4
6 0.65 50 140 2 0 2
7 0.79 50 90 2 0 2
8 0.89 60 30 2.4 0 2.4
9 0.67 50 180 2 4 -2
10 0.44 40 140 1.6 0 1.6
11 0.34 40 100 1.6 0 1.6
12 0.45 40 60 1.6 0 1.6
13 0.56 50 180 2 4 -2
14 0.67 50 130 2 0 2
15 0.87 50 80 2 0 2
16 0.47 50 30 2 0 2
17 0.57 50 180 2 4 -2
18 0.36 40 140 1.6 0 1.6
19 0.25 30 110 1.2 0 1.2
20 0.12 30 80 1.2 0 1.2
Total Profit 14

Total Profit per day 0.7

Daily Profit
Days Random No. Sales No. of Stamps Remaining Stock Profit Replenishment Cost Daily Profit
1 0.25 30 200 1.2 4 -2.8
2 0.35 40 160 1.6 0 1.6
3 0.23 30 130 1.2 0 1.2
4 0.11 30 100 1.2 0 1.2
5 0.45 40 60 1.6 0 1.6
6 0.65 50 180 2 4 -2
7 0.79 50 130 2 0 2
8 0.89 60 70 2.4 0 2.4
9 0.67 50 20 2 0 2
10 0.44 40 0 0.8 0 0.8
11 0.34 40 190 1.6 4 -2.4
12 0.45 40 150 1.6 0 1.6
13 0.56 50 100 2 0 2
14 0.67 50 50 2 0 2
15 0.87 50 0 2 0 2
16 0.47 50 180 2 4 -2
17 0.57 50 130 2 0 2
18 0.36 40 90 1.6 0 1.6
19 0.25 30 60 1.2 0 1.2
20 0.12 30 30 1.2 0 1.2
Total Profit 17.2

Total profit per day 0.86

Days Random No. Sales No. of Stamps Remaining Stock Profit Replenishment Cost Daily Profit
1 0.25 30 200 1.2 4 -2.8
2 0.35 40 160 1.6 0 1.6
3 0.23 30 130 1.2 0 1.2
4 0.11 30 100 1.2 0 1.2
5 0.45 40 60 1.6 0 1.6
6 0.65 50 10 2 0 2
7 0.79 50 180 2 4 -2
8 0.89 60 120 2.4 0 2.4
9 0.67 50 70 2 0 2
10 0.44 40 30 1.6 0 1.6
11 0.34 40 0 1.2 0 1.2
12 0.45 40 0 0 0 0
13 0.56 50 180 2 4 -2
14 0.67 50 130 2 0 2
15 0.87 50 80 2 0 2
16 0.47 50 30 2 0 2
17 0.57 50 0 1.2 0 1.2
18 0.36 40 0 0 0 0
19 0.25 30 200 1.2 4 -2.8
20 0.12 30 170 1.2 0 1.2
Total Profit 13.6

Total Profit per day 0.68