× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
b
2
M
2
V
2
f
2
c
2
c
2
K
2
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
thegingercoffee thegingercoffee
wrote...
Posts: 660
Rep: 0 0
6 years ago
Milk is stocked at the grocery store each week. At the end of the week unsold milk is reduced in price by 70 and always sells for this lower price instantly.
 
  If weekly demand for milk is normally distributed with a mean of 200 gallons and standard deviation of 25 gallons, find the price for which a fresh gallon of milk sells. Assume a service level of 95 and that the store purchases milk for 2 per gallon.
Read 65 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
Service level = Cs/(Cs + Co). If the selling price per gallon is X the salvage price is .3X. Thus, Cs = X-2 and Co = 2 - .3X. Solving .95 = X - 2/(X - 2 + 2 - .3X) gives X = 5.97, so the milk sells for 5.97 per gallon.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  527 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 218
  
 266
  
 385
Your Opinion
Do you believe in global warming?
Votes: 488
Previous poll results: How often do you eat-out per week?