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Daily demand for a chocolatier is normally distributed with mean of 1000 pieces and a standard deviation of 120 pieces. The wholesaler charges the chocolatier
Daily demand for a chocolatier is normally distributed with mean of 1000 pieces and a standard deviation of 120 pieces. The wholesaler charges the chocolatier a variable fee of $2 per piece of chocolate and a fixed shipping and handling fee of $90 (independent of order size). The opportunity cost of holding these chocolates is 2% of the unit cost per year. Assume 360 work days in a year.
Find the optimal order size of each order. Round to the nearest integer.
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