Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Do not include anything other than numbers in your responses. For example, do not include comma or dollar sign in your numbers. As a rule

Do not include anything other than numbers in your responses. For example, do not include comma or dollar sign in your numbers. As a rule of thumb, keep 2 decimal places for larger numbers and 3 decimal places for smaller numbers less than 1.

Joe's Slop House is a little hole in the wall restaurant that serves slow-cooked barbecue beef sandwiches. The beef for the sandwiches cooks overnight, so each evening Joe decides how much beef to cook for the next day. The beef costs $3 a pound and Joe sells each sandwich (filled with 1 pound of beef) for $5. At the end of the day, any leftover beef is given to the neighborhood church for their soup kitchen. The tax deduction for this is worth $1.5 a pound. Daily demand for the beef can be approximated by a normal distribution with a mean of 230 pounds and a standard deviation of 30 pounds.

A) Cost of Shortage (Cs):

B) Cost of Excess (Ce):

C) What is the optimal service level?

D) What is the corresponding z value?

E) How many pounds of beef should Joe cook for the next day?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Quantitative Methods For Business Management And Finance

Authors: Les Oakshott

7th Edition

1352005697, 978-1352005691

More Books

Students also viewed these General Management questions