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How many loafs of bread should be ordered for each delivery

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Question - A supermarket manager gets deliveries of its Value-White bread after every five days. The bread loafs are best for six day. The cost of bread to the supermarket is $0.7 per loaf and the selling price is $1.5 per loaf. At the end of the 5th day, the manager reduces the selling price of the unsold loafs to $0.5/loaf. Bread generally sells out at the reduced price. The 5 days demand for this bread can be approximated using a normal distribution with a mean of 800 and standard deviation of 40. How many loafs of bread should be ordered for each delivery?

Reference no: EM132891478

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