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Joe’s House is a small restaurant which serves slow-cooked barbecue beef sandwiches. The beef for the sandwiches cooks overnight, so each evening Joe decides how much beef to cook for the next day. The beef costs $2 a pound and Joe sells each sandwich (filled with 1 pound of beef) for $4. At the end of the day, any leftover beef is given to the neighborhood church for their soup kitchen. The tax deduction for this is worth $0.50 a pound. Daily demand for the beef can be approximated by a normal distribution with a mean of 50 pounds and a standard deviation of 10 pounds. What is the optimal quantity in Joe’s problem?

Operation Management, Management Studies

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