Course Solutions Uncategorized (Answered) : Small Grocery Store Sells Fresh Produce Obtains Local Farmer Strawberry Season Demand Fres Q28566714

(Answered) : Small Grocery Store Sells Fresh Produce Obtains Local Farmer Strawberry Season Demand Fres Q28566714

June 27, 2024June 27, 2024| adminadmin| 0 Comment| 6:53 pm
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A small grocery store sells fresh produce, which it obtains froma local farmer. During the strawberry season, demand for freshstrawberries can be reasonably approximated using a normaldistribution with a mean of 44 quarts per day and a standarddeviation of 4 quarts per day. Excess costs run .30 cents perquart. The grocer orders 50 quarts per day.
Use Table.

a.

What is the implied cost of shortage per quart? (Roundyour z value to 2 decimal places, your service levelprobability to 4 decimal places and your final answer to 2 decimalplaces. Omit the “$” sign

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