A small grocery store sells fresh produce which it obtains, Strategic Management

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A small grocery store sells fresh produce which it obtains

A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 42 quarts per day and a standard deviation of 8 quarts per day. Excess costs run .45 cents per quart. The grocer orders 43 quarts per day.

What is the implied cost of shortage per quart?

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Strategic Management: A small grocery store sells fresh produce which it obtains

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Strategic Management: A small grocery store sells fresh produce which it obtains

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