Decide how many bags of shredded cheese to order

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Reference no: EM132086194

A grocery store operations manager must decide how many bags of shredded cheese to order. The demand for shredded cheese is assumed to be normally distributed with a mean of 1400 and a standard deviation of 200. The grocery store will sell the shredded cheese for $3. It costs the grocery store $2 for each bag of shredded cheese it keeps stocked in inventory. The store has a deal with a homeless shelter than they can sell unsold bags of cheese to the shelter at $1. How many bags of shredded cheese should the grocery store stock (order) if it wants to maximize its expected profit?

Reference no: EM132086194

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Decide how many bags of shredded cheese to order : A grocery store operations manager must decide how many bags of shredded cheese to order.

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