For Suzies Sweetshop scenario in problem 77, suppose that demand is normally distributed with a mean of
Question:
For Suzie’s Sweetshop scenario in problem 77, suppose that demand is normally distributed with a mean of 75 and a standard deviation of eight. How will her optimal order quantity change? Use the Single Period Inventory Excel template in MindTap to find your answer.
Problem 77
Suzie’s Sweetshop makes special boxes of Valentine’s Day chocolates. Each costs $15 in material and labor and sell for $30. After Valentine’s Day, Suzie reduces the price to $10.00 and sells any remaining boxes. Historically, she has sold between 50 and 100 boxes. Determine the optimal number of boxes to make using the Single Period Inventory Excel template in MindTap. How would her decision change if she can only sell all remaining boxes at a price of $5?
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