Rise is considering adding pre-packed fresh food to their flites, selling the food outside in the...
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Rise is considering adding pre-packed fresh food to their flites, selling the food outside in the waiting area prior to customers boarding their flite. This is being used as a business strategy to help free up flite attendants' time with all their extra demands now in place due to covid 19. Rise airlines is calling this prepackaged food a "flite box". Each "flite box" includes a meal, snacks, reading material and dessert. The per flite demand for these all in one boxes is a random variable with discreet distribution. This was based on data analysis and the following is what was found: Demand Probality 5 10% 10 20% 15 25% 20 25% 25 15% 30 5% Each flite box costs Rise Airlines $6.75 to make and they sell the boxes for $17.99. Leftover boxes that are not sold to customers can be sold to the local food pantries for 99 cents per box. T A. If Rise decides to have 15 boxes available per flite, What would the expected profit be for that ONE flite? B. Based on the demand distribution above, how many boxed PER FLITE should Rise prepare each day to maximize profit? Rise is considering adding pre-packed fresh food to their flites, selling the food outside in the waiting area prior to customers boarding their flite. This is being used as a business strategy to help free up flite attendants' time with all their extra demands now in place due to covid 19. Rise airlines is calling this prepackaged food a "flite box". Each "flite box" includes a meal, snacks, reading material and dessert. The per flite demand for these all in one boxes is a random variable with discreet distribution. This was based on data analysis and the following is what was found: Demand Probality 5 10% 10 20% 15 25% 20 25% 25 15% 30 5% Each flite box costs Rise Airlines $6.75 to make and they sell the boxes for $17.99. Leftover boxes that are not sold to customers can be sold to the local food pantries for 99 cents per box. T A. If Rise decides to have 15 boxes available per flite, What would the expected profit be for that ONE flite? B. Based on the demand distribution above, how many boxed PER FLITE should Rise prepare each day to maximize profit?
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Answer rating: 100% (QA)
A To calculate the expected profit for one flite we need to consider the profit from each possible d... View the full answer
Related Book For
Physics
ISBN: 978-0077339685
2nd edition
Authors: Alan Giambattista, Betty Richardson, Robert Richardson
Posted Date:
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