You are a wholesaler specialized in organic, locally produced vegetables. You maintain a record of the quantity, in pounds, of the demand of vegetables per day. You have determined that the demand approximate a normal distribution with a mean of 22.55 and a standard deviation 2.64. You buy the vegetables at $12 /lb and sell them at $51 /lb.

Currently, you order the mean demand. Any left over is thrown away at the end of the day. What is your expected units short and profit per day following this ordering strategy?

Answer rating: 100% (QA)

Cost of overage Co Cost Salvage value 12 0 12 Cost of underage Cu Selling price Cost 51 12 39 Pres... View the full answer