What is the optimal stocking level

Assignment Help Operation Management

Reference no: EM13780482

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 $16 price. The cost of baking a cake is $10 and demand is estimated to be normally distributed with a mean of 25 and a standard deviation of 5. What is the optimal stocking level?

Reference no: EM13780482

Questions Cloud

Marketing to encourage the purchase of hybrid vehicles : Write an 8-15 page marketing plan for the proposal below. It is to follow 6th edition APA format and be of a quality graduate level. Please don't forget to use 5 Scholarly (minimum) References for a paper of this length. ***Keep in mind you are writi..

Discuss routing algorithms : Discuss routing algorithms, quality of service, and reliable packet delivery. Devote two or more pages to each topic in your unified submission. Include graphics for each section.

Consider a piecemeal replenishment situation : Consider a piecemeal replenishment situation where the production rate is 100 units per day, the demand (consumption) rate is 4 units per day, and the economic production lot size is 500 units. Which of the following statements is true? An item exper..

Do you agree with a former presidential candidate : Do you agree with a former presidential candidate that "corporations are people, too," and thus able to claim "freedom of religion" under the First Amendment

What is the optimal stocking level : 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 $16 price. The cost of baking a cake is $10 and demand is..

Describe how the disease is spread : How would you suggest treating patient - describe how the disease is spread - What is the most likely diagnosis and answer the questions.

What additional annual cost is the shop incurring by staying : Garden Variety Flower Shop uses 830 clay pots a month. The pots are purchased at $3.40 each. Annual carrying costs per pot are estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000..

What percentage of all violent crimes was not reported : According to the 2011 national crime victimization survey, approximately what percentage of all violent crimes was not reported to the police by victims

Calculate the total expenditure for each of the categories : The data in the table on the data sheet contains the operational expenditure and the budget for a small department.

User Account

All Pages