Henriques correas bakery prepares all its cakes between 4am


Henrique's Correa's bakery prepares all its cakes between 4am and 6am so they will be fresh when customers arrive. Day-old cakes are virtually always sold but at a 50% discount off the regular $16 price. The cost of baking a cake is $10 and demand is estimated to be normally distributed with a mean of 25 and a standard deviation of 5. What is the optimal stocking level?

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Operation Management: Henriques correas bakery prepares all its cakes between 4am
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