The local supermarket buys lettuce each day to ensure very fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week, the supermarket can buy fresh lettuce for $4 a box. The lettuce is sold for $10 a box and the dealer that sells old lettuce is willing to pay $1.50 a box. Past history says that tomorrow’s demand for lettuce averages 250 boxes, with a standard deviation of 34 boxes. How many boxes of lettuce should the supermarket purchase tomorrow?

The local supermarket buys lettuce each day to ensure very fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week, the supermarket can buy fresh lettuce for $4 a box. The lettuce is sold for $10 a box and the dealer that sells old lettuce is willing to pay $1.50 a box. Past history says that tomorrow’s demand for lettuce averages 250 boxes, with a standard deviation of 34 boxes. How many boxes of lettuce should the supermarket purchase tomorrow?

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Description: The local supermarket buys lettuce each day to ensure very fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals.This week, the supermarket can buy

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
The local supermarket buys lettuce each day to ensure fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy fresh lettuce for $4.00 a box. The lettuce is sold for $10.00 a box and the dealer that sells old lettuce is willing to pay $1.50 a box. History says that tomorrow’s demand for lettuce averages 250 boxes with a standard deviation of 34 boxes. How many boxes of lettuce should the supermarket purchase tomorrow?
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