Question: based on the information provided by the agency, analyse the inventory problem and help cinnabon decide the number of rolls to make each day to

based on the information provided by the agency, analyse the inventory problem

based on the information provided by the agency, analyse the inventory problem and help cinnabon decide the number of rolls to make each day to maximise its expected profit. determine the expected maximum profit. show calculations

The newly opened Cinnabon store at Raffles City needs to determine the number of rolls to make for its store. Being the first store in Singapore, Cinnabon does not have any historical data to rely on. The company hired an external agency to estimate the demand for the rolls. After a market survey, the agency determined that the minimum and maximum demand would be 50 and 350 , respectively and provided a discrete probability of different possible demands, as shown in Figure 1. Figure 1: Demand distribution for Cinnabon rolls Each roll is sold at $4 with a profit of $2.48. A nearby restaurant purchases unsold puffs for 38 cents each at the end of the day

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