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Posted: May 11th, 2022
OPS MGMT – Henrique Correaâs bakery
Henrique Correaâs bakery prepares all its cakes between 4am and 6am so they will be fresh when customers arrive. Day old cakes are virtually always sold, but at a 50% discount off the regular $10 price. The cost of baking a cake is $6, and demand is estimated to be normally distributed, with a mean of 25 and a standard deviation of 4. What is the optimal stocking level?
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