Daily demand for fresh cauliflower in the zz-warehouse, Operation Management

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Daily demand for fresh cauliflower in the zz-warehouse

Daily demand for fresh cauliflower in the ZZ-Warehouse store follows normal distribution with mean 100 cartons and s.d. 20 cartons. The ZZ-Warehouse buys at a cost of $50.00 per carton, sells it for $70.00 per carton. Unsold cartons are sold for $20.00 per carton. What is the optimal order quantity, using the single period model?

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Operation Management: Daily demand for fresh cauliflower in the zz-warehouse

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