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Bakery A starts the day with a large production run of bagels that will be sold throughout the day. It costs approximately $0.85 in materials
Bakery A starts the day with a large production run of bagels that will be sold throughout the day. It costs approximately $0.85 in materials and labor to make a bagel. The price of a fresh bagel is $1.99. Bagels not sold by the end of the previous day are sold the next day as "day-old" bagels for $0.5 each. The store manager predicts that daily demand for the bagels is normally distributed with mean 200 and standard deviation 13. Bakery A uses the Newsvendor model to manage the inventory of bagels. The underage cost of a bagel =$ The critical ratio = The overage cost of a bagel is $ The newsvendor quantity = bagels. (Round UP your answer to the closest integer. For example, if you answer is 80.2, report 81.)
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