The average daily demand of sandwiches
at ABC cafeteria at MUST branch is 120. The branch manager knows
that the sale is normally distributed with a standard deviation of
15 sandwiches. The sandwiches are not prepared in the MUST branch
ad are produced in the chain’s centralized kitchen. MUST branch has
to pay $0.7 for each sandwich and sells for $1.25. The unsold
sandwiches can be sold in the next day at $0.3. The manage wants to
determine how many pieces of sandwich he should order each day from
the centralized kitchen and the stock-out risk for that
quantity.
The average daily demand of sandwiches at ABC cafeteria at MUST branch is 120. The branch manager knows that the sale is
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