A local bakery is preparing for Thanksgiving and must decide…
A local bakery is preparing for Thanksgiving and must decide how many pumpkin pies to bake for the day. Each pie sells for $20 and costs $12 in ingredients and labor to produce. At the end of the day any unsold pies can be sold at a discount for $9 each. The bakers arrive arrive and go home early s the bakery cannot bake more pies during the day, and any unmet demand is lost (customers go elsewhere). From historic data, the bakery believes that Thanksgiving Day demand for pumpkin pies is approximately Normal with a mean demand of 500 pie and a standard deviation of 100 pies. Using the Normal demand assumption and your critical ratio, find the optimal number of pies the bakery should bake for Thanksgiving.