A franchisee of Fuddruckers, a hamburger restaurant chain based in Texas, has contracted to supply food for
Question:
The manager expects that on average, each person will eat one meal during the seven-hour festival. Sire has decided to limit the menu to just two meals: one-third-pound burgers and quarter-pound hot dogs. She estimates, based on regular restaurant sales, that 60 percent of people will buy the burger and 40 percent will buy the hotdog. Tire cost of one burger will be $2.25 and it will sell for $5, whereas the hot dog will cost $1.34 and will sell for $4. Unused food has to be discarded, and there is no penalty for being short. The meat, hot dogs, buns, and vegetables need to be ordered today (three days before tire festival so that they will arrive on the day of the festival). Determine the optimal order quantities for burgers and hotdogs.9
Step by Step Answer:
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati