Milk is stocked at the grocery store each week at the end


Milk is stocked at the grocery store each week. At the end of the week unsold milk is reduced in price by 60% and always sells for this lower price instantly. If weekly demand for milk is normally distributed with a mean of 300 gallons and standard deviation of 45 gallons, find the price for which a fresh gallon of milk sells. Assume a service level of 97.5% and that the store purchases milk for $2.44 per gallon.

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Operation Management: Milk is stocked at the grocery store each week at the end
Reference No:- TGS02586692

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