Linda Stanyon has been the production manager for Plano Produce for over eight years. Plano Produce is
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Linda Stanyon has been the production manager for Plano Produce for over eight years. Plano Produce is a small company located near Plano, Illinois. One produce item, tomatoes, is sold in cases, with daily sales averaging 400 cases. Daily sales are assumed to be normally distributed. In addition, 85% of the time the sales are between 350 and 450 cases. Each case costs $10 and sells for $15. All cases that are not sold must be discarded.
(a) Using the information provided, estimate the standard deviation of sales.
(b) Using the standard deviation in part (a), determine how many cases of tomatoes Linda should stock.
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Related Book For
Quantitative Analysis For Management
ISBN: 162
11th Edition
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna
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