Find the optimal stocking level and its stockout risk

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Reference no: EM131662476

Sweet cider is delivered weekly to Cindy's Cider Bar. Demand varies uniformly between 200 liters and 600 liters per week. Cindy pays 20 cents per liter for the cider and charges 90 cents per liter for it. Unsold cider has a salvage value of 10 cents per liter and cannot be carried over into the next week due to spoilage. Find the optimal stocking level and its stockout risk for that quantity.

Reference no: EM131662476

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