Question: A burger restaurant buys top-grade ground beef for $3 per kg. A large sign over the entrance guarantees that the meat is fresh daily. Any

A burger restaurant buys top-grade ground beef for $3 per kg. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for $2 per kg. Eight hamburgers can be prepared from each kilogram of meat. Burgers sell for $2 each. Labour, overhead, meat, buns, and condiments cost $l per burger. Demand for ground beef is Normally distributed with a mean of 400 kg per day and a standard deviation of 50 kg per day. What daily order quantity' is optimal?

Step by Step Solution

3.35 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Cost 3 per kg Salvage value 2 per kg 8 burgers per kg Price of a bur... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

686-B-M-L-O-M (5085).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!