We need to determine the correct ordering quantity in Ned's grocery store.

Ned buys his stock of fresh vegetables in the morning for $2.50 per kilogram and sells them through the day for $6.00 per kilogram.

Any unsold vegetables are sold off at a sale price of $1.00 per kilogram at the end of the day.

For Ned, the following daily demand values are equally likely: 20, 30, 40, 50, and 60 kilograms.

1. What should be Neds target service level?

Group of answer choices

70%

65%

75%

55%

2.

Based on the information above, how many kilograms of vegetable should Ned order for the day?

Group of answer choices

70

60

40

50

3. How many kilograms of fresh vegetables, on an average, does Ned expect to sell during the day?

Group of answer choices

38

48

40

58

4. What is (approximately) Neds Fill Rate, using the definition FR = E[Sales] / E[Demand]?

Group of answer choices

100%

90%

96%

95%

5. How much total profit does Ned expect to make in the day?

Group of answer choices

$115

$132

None of the above

$125