Question
Crystal Jade Bakery sells each loaf of bread for $3.50. The store purchases each loaf for $2.00Having advertised fresh bread, the store will sell day
Crystal Jade Bakery sells each loaf of bread for $3.50. The store purchases each loaf for $2.00Having advertised "fresh" bread, the store will sell "day old bread" at 60% discount from the normal price. A holding cost of $0.30 is charged on each load of "day old bread". Assume a loss of goodwill cost of $0.50 if the store runs out of stock.The daily demand for fresh bread is normally distributed with a mean of 1,000 and standard deviation of 100.How many loaves of bread should be ordered? You can assume that all "day old" bread loaves can be completely sold at the discounted price.
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