A Bakery Uses 5 Containers That Each Hold 5 Cakes

question 131

Essay

A bakery uses 5 containers that each hold 5 cakes. If daily demand is 20 cakes and lead time is 1 day determine the safety stock.

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Definitions:

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Commodity

A fundamental merchandise in commerce that can be swapped with other merchandise of a similar nature.

Maximise

To increase to the greatest possible amount or degree within a given set of constraints, often used in the context of profit or utility maximization.

Input

A resource or component used in the production process to produce goods and services.