Demand for organic super fresh lettuce in a local supermarket follows the distribution. Demand 11 Probability...

 

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Demand for organic super fresh lettuce in a local supermarket follows the distribution. Demand 11 Probability 0.1 Cumulative Probability 0.1 12 0.2 0.3 13 0.3 0.6 14 0.2 0.8 15 0.1 0.9 16 0.1 1 Unsold cabbage is given to a food bank with a salvage value of $2.00 unit of the cabbage. The cost of the cabbage is $4.00 per unit. The selling price is $6.00 per unit. Using the Newsvendor model, 1. Identify Cu and Co. (5 points) 2. Identify the optimal service level and the optimal order quantity the supermarket should use. (5 points) Demand for organic super fresh lettuce in a local supermarket follows the distribution. Demand 11 Probability 0.1 Cumulative Probability 0.1 12 0.2 0.3 13 0.3 0.6 14 0.2 0.8 15 0.1 0.9 16 0.1 1 Unsold cabbage is given to a food bank with a salvage value of $2.00 unit of the cabbage. The cost of the cabbage is $4.00 per unit. The selling price is $6.00 per unit. Using the Newsvendor model, 1. Identify Cu and Co. (5 points) 2. Identify the optimal service level and the optimal order quantity the supermarket should use. (5 points)

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Demand Probability LO 5 6 7 8 01 06 01 02 Cu... View the full answer