Question: Burger Prince buys top - grade ground beef for $ . 8 0 per pound. A large sign over the entrance guarantees that the meat
Burger Prince buys topgrade ground beef for $ per pound. 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 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for cents each. Labor, overhead, meat, buns, and condiments cost cents per burger. Demand is normally distributed with a mean of pounds per day and a standard deviation of pounds per day. What daily order quantity is optimal? Hint: calculate overage and shortage costs per pound.
Optimal daily order quantity in pounds
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