What is the optimal stocking level

Assignment Help Operation Management

Reference no: EM13222392

Henrique's Correa's 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?

Reference no: EM13222392

Questions Cloud

What are pros and cons of an outcome-oriented culture : Think about an organization you are familiar with. On the basis of the dimensions of OCP, how would you characterize its culture?

Explain balanced equations for the reaction of anthracene : Balanced equations for the reaction of resorcinol in water, resorcinol in toluene, and resorcinol in hexanes. Balanced equations for the reaction of anthracene in the same three solvents.

What are the risks to suppliers associated with each : What are the risks to suppliers associated with each of the different types of contracts (fixed-price, incentive, and cost-based contracts)?

Improve the employee engagement : Improve the industry experience of existing employees and improve the employee engagement

What is the optimal stocking level : 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?

Determine equilibrium quantity exchanged nd price of popcorn : Assume that the supply curve for popcorn is determined by the following: Qs=12Pp. Assume further that today's price of nachos is $6 per serving and of candy is $4 per bag. Determine the equilibrium quantity exchanged and price of popcorn.

Determine the freezing point of pure camphor : the freezing point of pure camphor is 178.4 degrees C, and its molal freezing-point constant, Kf, is 40.0 degrees C/m. Find the freezing-point of a solution containing 3.00 g of a compound (molar mass=125 g/mol) dissolved in 45.0 g of camphor

Locate the fire station using the center-of-gravity model : If it is anticipated that zone 2 (which houses senior residents) will be visited twice as frequently as any other zone, where would you locate the fire station using the center-of-gravity model?

Determine how many pizzas would have to be sold : Determine how many pizzas would have to be sold to break even.

User Account

All Pages