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Miss Blanche sells tomatoes in the market on Saturdays so has to order her supplies from the farmers by Tuesday for collection on Friday. Her
Miss Blanche sells tomatoes in the market on Saturdays so has to order her supplies from the farmers by Tuesday for collection on Friday. Her sales (lbs) for the last couple of months have been wki wk2 wk3 wk4 wk5 wk6 wk7 wk8 wk9 wk10 100 140 120 140 140 100 120 140 140 120 An additional 5% of the reported sales quantity is lost due to spoilage and giveaways. Blanche has to pay $1,000 for the delivery of the tomatoes and the agreed price is $80 per lb. which she resells for $120 per lb. Question 1 How much should Ms Blanche order for next week? Question 2 What are the trade-offs? Question 3 Explain using a decision tree and all the relevant decision criteria Hint: what is the likelihood that demand shall be 100, 120, 140
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