Question 12.13: Finding the Optimal Stocking Level When Demand Is Normally D...

Operations Management

Finding the Optimal Stocking Level When Demand Is Normally Distributed
Cindy’s Cider Bar also sells a blend of cherry juice and apple cider. Demand for the blend is approximately normal, with a mean of 200 liters per week and a standard deviation of 10 liters per week. $C_s$ = $2.40 per liter, and $C_e$ = $.80 per liter. Find the optimal stocking level for the apple-cherry blend.

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