Milk is stocked at the grocery store each week. At the end of the week unsold milk is reduced in price by 50% and always sells for this lower price instantly. If weekly demand for milk is normally distributed with a mean of 200 gallons and standard deviation of 25 gallons, find the price for which a fresh gallon of milk sells. Assume a service level of 90% and that the store purchases milk for $3 per gallon.

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The Answer of Milk is stocked at the grocery store each week. At the end of the week unsold milk is reduced in price by 50% and always sells for this lower price instantly. If weekly demand for milk is normally distributed with a mean of 200 gallons and standard deviation of 25 gallons, find the price for which a fresh gallon of milk sells. Assume a service level of 90% and that the store purchases milk for $3 per gallon.

Milk Is Stocked at the Grocery Store Each Week