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Demand for egg custard tarts on Mondays at CSU Shoppe is shown in the following table. Demand (dozens) 7 9 10 11 12 13 14
Demand for egg custard tarts on Mondays at CSU Shoppe is shown in the following table. Demand (dozens) 7 9 10 11 12 13 14 15 Probability 0.15 0.15 0.15 0.15 0.10 0.10 0.10 0.05 0.05 Determine the optimal number of egg custard tarts, in dozens, to stock if labor, materials, and overhead are estimated to be $16 per dozen, tarts are sold for $20 per dozen, and leftover tarts at the end of each day are sold the next day at half price. What is the optimal stocking level on Mondays?
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