Question: A perishable dairy product is ordered daily at a particular supermarket. The product costs $1.60 per unit and sells for $2.25 per unit. If units

A perishable dairy product is ordered daily at a particular supermarket. The product costs $1.60 per unit and sells for $2.25 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume the daily demand is approximately normally distributed with mean of 150 and standard deviation of 30. How many should be ordered, i.e., what is the optimal stocking level?

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