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Billy's Bakery bakes fresh bagels each morning. The daily demand for bagels has been estimated as a Normal random variable with mean 135 and standard deviation 10. The bagels cost $1.2 to make, and they are sold $2.5 each. Bagels unsold at the end of the day are purchased by a nearby charity soup kitchen for 80 cents each. However, Billy's must transport the unsold bagels to the kitchen at a cost of 15 cents each. How many bagels should Billy's bake at the start of each day to balance shortage and excess costs?

A) 214
B) 122
C) 185
D) 176
E) 140

 

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9694707

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