What is an optimal stocking level


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Q: Henrique Correa's bakery prepares all its cakes between 4 A M. and 6 A.M.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 and demand is estimated to be normally distributed, with a mean of 30 and a standard deviation of 7. What is optimal stocking level?

Refer to the standard the normal Table for z-values. The optimal stocking level for the bakery is cakes

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Game Theory: What is an optimal stocking level
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