Daily demand for the ice creams at I-Scream parlor is normally distributed with a mean of 160 quarts and a standard deviation of 100 quarts. The owner has the ice cream supplied by a wholesaler who charges $2 per quart. The wholesaler charges a $400 delivery charge independent of order size. It takes 4 days for an order to be supplied. The opportunity cost of capital to I-Scream is estimated to be 25% per year. Assume 360 days in the year. [Show all work]
-Currently the owner orders 4000 quarts of ice cream when they have 1680 quarts on hand. The average time spent by a quart of ice cream at the parlor is:
A) 39.6 days
B) 20 days
C) 19 days
D) 15 days
E) 12.5 days

Question

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The Answer of Daily demand for the ice creams at I-Scream parlor is normally distributed with a mean of 160 quarts and a standard deviation of 100 quarts. The owner has the ice cream supplied by a wholesaler who charges $2 per quart. The wholesaler charges a $400 delivery charge independent of order size. It takes 4 days for an order to be supplied. The opportunity cost of capital to I-Scream is estimated to be 25% per year. Assume 360 days in the year. [Show all work]
-Currently the owner orders 4000 quarts of ice cream when they have 1680 quarts on hand. The average time spent by a quart of ice cream at the parlor is:
A) 39.6 days
B) 20 days
C) 19 days
D) 15 days
E) 12.5 days

Daily Demand for the Ice Creams at I-Scream Parlor Is