What is the implied cost of shortage per


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 44 quarts per day and a standard deviation of 5 quarts per day. Excess costs run .50 cents per quart. The grocer orders 49 quarts per day.

Use Table.

What is the implied cost of shortage per quart? (Round your z value to 2 decimal places, your service level probability to 4 decimal places and your final answer to 2 decimal places. Omit the "$" sign in your response.)

Shortage cost per quart           $

Request for Solution File

Ask an Expert for Answer!!
Operation Management: What is the implied cost of shortage per
Reference No:- TGS02533839

Expected delivery within 24 Hours