Blockbuster Publishers Problem1
Every 4 years, Blockbuster publishers revises its textbooks. It has been 3 years
since the best-selling book The Joy of Excel has been revised. At present, 2000
copies of the book are in stock, and Blockbuster must determine how many
copies of the book to print for the next year. The sales department believes that
sales during the next year are governed by a triangular distribution with
parameters 4000, 6000, and 9000. Each copy of Joy sold during the next year
brings the publisher a revenue of $35. Any copies left at the end of the year
cannot be sold at full price, but can be sold for $5 to Bonds Ennoble and Gitano’s
bookstores. The cost of printing the book is $50,000 plus $15 per book printed.
(a) Use simulation to help the publisher decide how many copies of Joy to
(b) Does your answer change if 4000 copies are currently in stock?
1Based on 13-34 (p. 752) in Practical Management Science (2 nd ed., Winston and Albright, 2001