Unsold cider has no salvage value and cannot be carried


Sweet cider is delivered weekly to Cindy’s Cider Bar. Demand for cider is approximately normal with mean of 200 liters per week and a standard deviation of 10 liters per week. Cindy pays 20 cents per liter for the cider and charges 80 cents per liter for it. Unsold cider has no salvage value and cannot be carried over into the next week due to spoilage. What is the optimal stocking level? 200 liters. 202.4 liters. 206.7 liters. 210 liters.

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Operation Management: Unsold cider has no salvage value and cannot be carried
Reference No:- TGS02472051

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