ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:A bakery has determined that the number of loaves of its white
bread demanded daily has a normal distribution with mean 7,200
loaves and standard deviation 300 loaves. Based on cost
considerations, the company has decided that its best strategy is
to produce a sufficient number of loaves so that it will fully
supply demand on 94% of all days.
a. How many loaves of bread should the company produce?
b. Based on the production in part (a), on what percentage of
days will the company be left with more than 500 loaves of
unsold bread?
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