Business, 08.04.2021 20:20 zahriaarana
A local bakery shop bakes fresh muffins every morning to be sold throughout the day. The average daily demand for muffins is estimated as 50 with standard deviation of 5, and the demand is assumed to be normally distributed. Producing each muffin costs bakery shop 1 dollar, and the shop sells each muffin at 5 dollars. Any unsold muffin by the end of a day are given away for free. The average daily demand for muffins is estimated as [d] with standard deviation of [s]. Using the newsvendor model, how much muffin needs to produced every morning to maximize the expected profit
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A local bakery shop bakes fresh muffins every morning to be sold throughout the day. The average dai...
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