Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A? (use the normal distribution table posted on Canvas and round up to the nearest integer)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Bakery A sells bread for $2 per loaf that costs
$0.50 per loaf to make. Bakery A gives an 80%
discount for its bread at the end of the day.
Demand for the bread is normally distributed
with a mean of 300 and a standard deviation of
30. What order quantity maximizes expected
profit for Bakery A? (use the normal distribution
table posted on Canvas and round up to the
nearest integer)
Transcribed Image Text:Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A? (use the normal distribution table posted on Canvas and round up to the nearest integer)
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