Question: Please use R to answer this question 1.A convenience store needs to make a decision of how many packages of California rolls prepare for tomorrow.
Please use R to answer this question
1.A convenience store needs to make a decision of how many packages of California rolls prepare for tomorrow. A package of California rolls cost the store $2.00 and it sells for $6.00. Daily demand is normally distributed with a mean of 100 packages of California rolls and a standard deviation of 40 packages of California rolls. If there are leftovers at the end of the day, the store donates them.
a.Use simulation optimization to find the optimal packages of California rolls that maximizes the store's profit.
b.Add a chance constraint to the model (VaR constraint) to make sure that there is a 90% chance that California rolls are available to the customers. Then, use optimization to find the optimal packages of California rolls that maximizes the store's profit.
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