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Henrique Correa's bakery prepares all its cakes between 4 A . M . and 6 A . M . so they will be fresh when
Henrique Correa's bakery prepares all its cakes between AMand AMso they will be fresh when customers arrive. Dayold cakes are virtually always sold, but at a discount off the regular $ price. The cost of baking a cake is $ and demand is estimated to be normally distributed, with a mean of and a standard deviation of What is the optimal stocking level? Refer to the standard normal table... for zvalues.
The optimal stocking level for the bakery is
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