The cost for a carton of milk is $3, and it is sold for $5. when the milk expires, it is thrown out. you also know that the mean of historical monthly demand is 1,500 and the standard deviation is 200.
a. what is the cost of overstocking and understocking?
b. calculate the critical ratio.
c. what is the optimal quantity of milk cartons that should be
Answers: 2
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The cost for a carton of milk is $3, and it is sold for $5. when the milk expires, it is thrown out....
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