Question: 4 . A green grocer has exactly 1 , 0 0 0 square feet ( sqf ) available to display and sell 3 kinds of

4. A green grocer has exactly 1,000 square feet (sqf) available to display and sell 3 kinds of vegetables. The ratios of each vegetable space-per-pound to cost-per-pound are the same for all vegetables, and tomatoes consume 0.5 sqf per . There is a $100 setup cost for replenishing any of the, and the interest rate is 25% per annum. The 3 vegetables for sale have the following data:
Tomatoes: annual demand is 850 pounds and the cost per pound is $0.29.
Lettuce: annual demand is 1280 pounds and the cost per pound is $0.45.
Zucchini: annual demand is 630 pounds and the cost per pound is $0.25.
Answer the following questions:
4.1) What is the optimal quantity for purchasing each vegetable (include model name and all formulas)?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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

Students Have Also Explored These Related General Management Questions!