In many respects, the food inventory decision for each Celebrity cruise matches the single-period inventory model described

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In many respects, the food inventory decision for each Celebrity cruise matches the single-period inventory model described in this chapter. Consider the decision about chicken. Suppose that Celebrity purchases chicken in bulk for $0.80 per pound, and any chicken left over after a cruise is donated to local food banks. Management estimates that a shortage penalty of $1.00 per pound is incurred due to lost customer goodwill from unsatisfied demand. If chicken demand for a 7-day cruise is normally distributed with a mean of 3,000 pounds and a standard deviation of 200 pounds, how many pounds should be brought onto the ship? lop1

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Operations Management Sustainability And Supply Chain Management

ISBN: 9781292295039

13th Global Edition

Authors: Jay Heizer, Barry Render, Chuck Munson

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