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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?
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Suppose you are overseeing the purchasing of a certain commodity for the following year. The demand for this item is estimated to be 20,000 units/year, and steady throughout. Every
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