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Daily demand for fresh cauliflower in the ZZ-Warehouse store follows a normal distribution with a mean of 100 cartons and standard deviation of 20 cartons.
Daily demand for fresh cauliflower in the ZZ-Warehouse store follows a normal distribution with a mean of 100 cartons and standard deviation of 20 cartons. The ZZ-Warehouse buys at a cost of $50.00 per carton and sells it for $70.00 per carton. Unsold cartons are sold for $20.00 per carton. What is the optimal order quantity, using the single-period model?
a) 110
b) 100
c) 105
d) 95
e) 80
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