Question
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?
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