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1. A Las Vegas supermarket bakery must decide how many wedding cakes to prepare for the upcoming weekend. Cakes cost $50 each to make and they sell for $90 each. The price of leftover wedding cakes is reduced by 50% on Mondays to clear out inventory. Demand for the weekend is normally distributed with a mean of 109 and a standard deviation of 28.
What is the optimal number of wedding cakes to stock on the weekend?
2. A Las Vegas supermarket bakery must decide how many wedding cakes to prepare for the upcoming weekend. Cakes cost $55 each to make and they sell for $64 each. The price of leftover wedding cakes is reduced by 50% on Mondays to clear out inventory. Demand for the weekend is normally distributed with a mean of 108 and a standard deviation of 12.
3. A Las Vegas supermarket bakery must decide how many wedding cakes to prepare for the upcoming weekend. Cakes cost $27.84 each to make and they sell for $41.22 each. The price of unsold cakes is reduced to $20.49 on Mondays. Demand for the weekend is normally distributed with a mean of 74 and a standard deviation of 4.2.
What is the optimal probability of having enough wedding cakes on the weekend?
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