Page 1 of 1
The Bota Minimart must decide how many cases of milk to stock each week in order to meet demand. The probability distrib
Posted: Wed Jul 06, 2022 12:27 pm
by answerhappygod
- The Bota Minimart Must Decide How Many Cases Of Milk To Stock Each Week In Order To Meet Demand The Probability Distrib 1 (45.13 KiB) Viewed 12 times
The Bota Minimart must decide how many cases of milk to stock each week in order to meet demand. The probability distribution of demand during a week is shown below. Demand (cases) Probability 16 0.30 Table 1 17 0.40 18 0.30 Each case costs the Minimart RM10 and sells for RM12. Unsold cases are sold to a local farmer (who mixes the milk with feed for livestock) for RM2 per case. If there is a shortage, the Minimart considers the cost of customer good will and lost profit to be RM4 per case. Determine the number of cases the Minimart should stock each week. Draw a decision tree.