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Antipasti is a company that makes antipasti and dips made with local products. They are renowned for their antipasto being fresh, made every week (
Antipasti is a company that makes antipasti and dips made with local products. They are renowned for their antipasto being fresh, made every week
presumably they are produced at the beginning of that week
The demand they observe weekly can be approximated with a normal distribution of average
and standard deviation of
per week. On average, a
oz antipasto has a unit cost of $
and sells for $
Any antipasto left over at the end of the week is discarded; although the container is washed and recycled, thus recovering $
per
oz container.
Questions
Part
a
Determine how much the antipasto should be made per week.
Part
b
Using that order size
i
e
the one calculated in Part
a
for the next
weeks determine the average cost per week of
overage
and underage if demand behaved as follows in those next weeks
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