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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