Question
*PLEASE READ QUESTION CAREFULLY* Not the same as the other questions on here Sunrise Bakery has decided to bake 20 loaves of its famous sourdough
*PLEASE READ QUESTION CAREFULLY* Not the same as the other questions on here
Sunrise Bakery has decided to bake 20 loaves of its famous sourdough bread at the beginning of the day. The store has determined that daily demand will follow the distribution shown in the following table. Each loaf costs Sunrise $1.50 and can be sold for $3. Sunrise can sell any unsold loaves for $0.75 the next day. (Question continues on next page.)
Daily Demand | Probability |
5 | 0.08 |
10 | 0.12 |
15 | 0.25 |
20 | 0.20 |
25 | 0.20 |
30 | 0.15 |
a. Simulate one month (30 days) of operation to calculate the bakerys total monthly profit. Replicate this calculation 200 times to compute the average total monthly profit. Use a Data Table in Excel.
b. Sunrise Bakery would like to investigate the profitability of baking 15, 20, 25 or 30 loaves at the start of the day. Which quantity would you recommend? Why? Use the Scenario Manager in Excel, and include the Scenario Summary output.
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