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Manufacturing systems engineering Athena Grocery receives monthly shipments of Naan Bread from a specialty bakery in New York. The monthly demand is normally distributed with
Manufacturing systems engineering Athena Grocery receives monthly shipments of Naan Bread from a specialty bakery in New York. The monthly demand is normally distributed with a known mean of 283 packs and a standard deviation of 28 packs. Packs are purchased wholesale for $1.65 /pack and sold for $3.85/ pack. At the end of the month unsold packs have a known salvage value of $0.60 /pack. Using the News Vendor model what is Athena's optimal monthly order quantity for the Naan bread (Integer answer) In the above question Athena Grocery is able to increase the month end salvage price to $0.69 / pack. If the purchase price for $1.65 /pack and selling price for $3.85/ pack remains the same. service level for the Naan bread packs? (Percentage answer one decimal place)
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