Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pizza U.S.A., Inc., produces and markets pizzas on a national basis. The shop manager decides how many pizzas to be made. He learns that daily


Pizza U.S.A., Inc., produces and markets pizzas on a national basis. The shop manager decides how many pizzas to be made. He learns that daily demand for pizza follows a normal distribution of mean 150 and standard deviation 30.

Part a:

The manager estimates that he will be able to make a profit if he sells more than 200 pizzas. The manager expects to get an incentive only if he makes a profit. What is the probability that the manager will receive an incentive?

Part b:

The manager is also aware that if the sale drops below 100, then he receives a pay-cut. What is the probability that he will receive a pay cut?

Part c:

What is the probability that pizza sales are within 20% of the average value (mean demand)?

Part d:

If the manager has materials to make only 168 pizzas for a given day with the raw materials available with him, how much are the expected lost sales assuming there is no way that additional raw materials can be purchased for that day?

Part:

If the manager wants the expected lost sales to be 15 pizzas or lower, then how much raw materials (equivalent to how many pizzas) must he store at the beginning of the 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

Step: 3

blur-text-image

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

Fundamentals of Management

Authors: Robbins, DeCenzo, Coulter

7th Edition

132996855, 0-13-610982-9 , 9780132996853, 978-0-13-61098, 978-0136109822

More Books

Students also viewed these General Management questions

Question

lim x cos

Answered: 1 week ago

Question

What are the principal alloying elements in SAE 4340 steel?

Answered: 1 week ago