15.2. Deep Six Seafood, a restaurant that is open 360 days a year, specializes in fresh Maine...

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15.2. Deep Six Seafood, a restaurant that is open 360 days a year, specializes in fresh Maine lobsters at a cost of $10 each.

Airfreight charges have increased significantly, and it now costs Deep Six $48 to place an order. Because the lobsters are shipped live in a saltwater tub, the order cost is not affected by order sizes. The cost to keep a lobster alive until needed runs about 2% of cost per day. The demand for lobsters during the one-day lead time is shown below.

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Service Management Operations Strategy Information Technology

ISBN: 9781265075538

10th International Edition

Authors: Sanjeev K. Bordoloi, James A. Fitzsimmons, Mona J. Fitzsimmons

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