The ______ argues that combining location specific assets or resource endowments and the firm's own unique assets often requires
1 answer:
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Answer:
27
Explanation:
The computation of the optimal stocking level for the bakery is shown below:
Given that
Cost = c = $7
Selling price = p = $ 10
salvage value = s = $ 5
Mean = 25
Standard deviation = = 8
Now based on the above information
underage cost = Cu = p-c = $10 - $7 = $3
And,
overage cost = Co = c-s = $7 - $5 = $2
So,
= 0.6
Now use normsinv() function in excel
So,
The Z value for the probability 0.6 is 0.2533
Now finally
The optimal stocking level is
= 25 + 0.2533 × 8
= 27.02
= 27