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Joe's Coffee Shop has fresh doughnuts delivered each morning. Daily demand for donuts is approximately normal with a mean of 12 dozen and a standard deviation of 2 dozen. Joe has estimated that if he runs short, it costs him $2.40 per dozen doughnuts, and if he has extra donuts left over it costs him it costs him $1.20 per dozen. What is the optimal service level for Joe?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92583925

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