A fishmonger buys fish from a local fisherperson for sale in a fish market early each morning for $5.25/fish. The fish retail for $19.99/fish. Leftover fish are sold to a shelter at the end of the day for $1. Demand at the fish market for the fish is Poisson with a mean of 210. 

What is the optimal order quantity for the fishmonger?

Answer rating: 100% (QA)

The optimal order quantity for the fishmonger can be determined using a concept called the Newsvendor Model This model applies to situations where demand is uncertain Poisson distribution in this case ... View the full answer