A franchisee of Fuddruckers, a hamburger restaurant chain based in Texas, has contracted to supply food for

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A franchisee of Fuddruckers, a hamburger restaurant chain based in Texas, has contracted to supply food for a day-long music festival in Crystal Beach, North Carolina. Fuddruckers distinguishes itself from other hamburger restaurant drains with on-premise butcher shop and bakery. Fuddruckers’ only Canadian restaurant is located in Saskatoon. It is now the Wednesday before the Saturday festival. Approximately 5,000 tickets have been sold so far, and this number should increase because it is predicted that Saturday will be sunny. The manager* based on previous experience, believes that the eventual number of people who will attend the festival, and the associated probabilities, are:

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The manager expects that on average, each person will eat one meal during the seven-hour festival. Sire has decided to limit the menu to just two meals: one-third-pound burgers and quarter-pound hot dogs. She estimates, based on regular restaurant sales, that 60 percent of people will buy the burger and 40 percent will buy the hotdog. Tire cost of one burger will be $2.25 and it will sell for $5, whereas the hot dog will cost $1.34 and will sell for $4. Unused food has to be discarded, and there is no penalty for being short. The meat, hot dogs, buns, and vegetables need to be ordered today (three days before tire festival so that they will arrive on the day of the festival). Determine the optimal order quantities for burgers and hotdogs.9
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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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