Find the optimal stocking level for the apple-cherry


Cindy’s Cider Bar sells a blend of cherry juice and apple cider. Demand for the blend is approximately normal, with a mean of 200 liters per week and a standard deviation of 10 liters per week. Cindy pays 20 cents per liter for the blend and charges 80 cents per liter for it. Unsold blend has no salvage value and cannot be carried out over into the next week due to spoilage. Find the optimal stocking level for the apple-cherry blend.

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Operation Management: Find the optimal stocking level for the apple-cherry
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