Question: Weekly demand (order size in gallons) for milk from a dairy is listed in Table 6.15. Assume that orders are in lot sizes of 25.
Weekly demand (order size in gallons) for milk from a dairy is listed in Table 6.15. Assume that orders are in lot sizes of 25.

a. Construct a contingency (frequency) table and a probability (relative frequency) table for demand.
b. Construct a decision tree.
c. How much milk should be produced each week if the selling price to grocery stores is $1.85 per gallon and the cost to the dairy is $0.65 per gallon?
Table 6.15 Milk Demand Data Week 1 Demand Week Demand Week Demand 75 21 75 15 41 125 45 23 25 22 50 42 75 50 23 150 43 75 150 24 125 44 50 7 819 6 50 75 9 50 12 13 14 15 16 17 18 19 20 50 50 75 50 50 50 125 25 50 45 150 26 100 46 50 27 75 47 25 28 100 48 175 100 29 50 49 25 30 25 50 50 150 31 25 51 100 32 50 52 200 33 100 53 50 150 34 175 54 50 35 175 55 100 36 75 56 125 37 100 57 100 38 50 58 125 39 75 59 100 40 50 60 125
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
