Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a bakerythat bakes and sells baked fresh brownies to a variety of retailers every day. Demand can vary from 4,500 to 8,500 anygivenday and

Consider a bakerythat bakes and sells baked fresh brownies to a variety of retailers every day. Demand can vary from 4,500 to 8,500 anygivenday and is more or less following a uniform distribution. Browniesweigh 5 oz each, retail for $2.75 and cost $1.15 to make. At the end of each day all remaining inventory isblended and mixed with milk (1 oz for each muffin) at a cost of .5per brownie. The resulting substance is used as an ingredient in cakesand is sold to another bakery for .25/oz.a

) What is the expected daily cost of being over-stocked?

)How many browniesshould be made every day?

c) What is the average revenue from selling thecake ingredientper day?d) What is the expected daily units of stock-out?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Whole School Audit Development Planning For Primary And Special Schools

Authors: Brian Drakeford

1st Edition

1853465011, 978-1853465017

More Books

Students also viewed these Accounting questions

Question

Define Administration and Management

Answered: 1 week ago

Question

Define organisational structure

Answered: 1 week ago

Question

Define line and staff authority

Answered: 1 week ago

Question

Define the process of communication

Answered: 1 week ago

Question

Explain the importance of effective communication

Answered: 1 week ago