Question: Supply Chain Management Problems Larry sells a highly perishable food product to construction workers at 777 Peachtree, a new luxury high rise under-construction in mid-town

 Supply Chain Management Problems Larry sells a highly perishable food product

Supply Chain Management Problems Larry sells a highly perishable food product to construction workers at 777 Peachtree, a new luxury high rise under-construction in mid-town Atlanta. The product costs Larry $4.50 wholesale and he sells the product for $12.00 to his construction worker clientele. Ignore sales tax. Larry doesn't pay it anyway, When Larry runs out of product, he simply takes orders from his remaining customers, walks to the Varsity Drive In, and buys the exact amount of product needed to fill the orders. Larry charges each customer exactly $1.50 more per product than his costs, which will be variable based on the exact food orders placed by the individual workers, Larry only provides this "courier" service if he runs out of his own product and performs the service to maintain goodwill with his customers. If Larry instead of being under (on his own product), is over, he has to discard the unsold product. Larry believes that his demand follows a normal distribution with a mean of 175 and a standard deviation of 18, Considering this information, what is Larry's optimum service level? Select the closest answer This Problem Counts 5 Points

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