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A Bakery Makes Fresh Donuts Every Morning

Question 38

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A bakery makes fresh donuts every morning.If any are left at the end of the day they are donated to a homeless shelter.The number of donuts that can be sold each day is uncertain and the bakery must decide early each morning,how many donuts to make that day.The bakery has created the following payoff table to summarize the situation. A bakery makes fresh donuts every morning.If any are left at the end of the day they are donated to a homeless shelter.The number of donuts that can be sold each day is uncertain and the bakery must decide early each morning,how many donuts to make that day.The bakery has created the following payoff table to summarize the situation. The opportunity loss for making a medium number of donuts (A<sub>2</sub>)and demand being high (S<sub>1</sub>)is 100. The opportunity loss for making a medium number of donuts (A2)and demand being high (S1)is 100.

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