Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 8 * This is a new problemen Q 3 ) You are in charge of the annual banquet for the Football Boosters Club at

QUESTION 8
*This is a new problemen
Q3) You are in charge of the annual banquet for the Football Boosters Club at your college. One week before the banquet, you must make a commitment for the number of dinners. The price for these dinners will be $7 each. If fewer people show up than the committed number, you are still required to pay for the full number. If more people attend than your committed number, they will be served at a cost of $12 each. For example, if you commit for 200 people and 200 or fewer show up, you still have to pay $1,400. If more than 200 people attend, you pay $1,400 plus $12 for each dinner in excess of 200. Your judgment about the number attending can be described by a uniform probability distribution with a maximum of 400 people and a minimum of 100.
a) Suppose the cost of the banquet is being borne entirely by the Alumni Association, and your objective is to minimize the cost, given that all who attend will be served. How big a prior commitment for dinners should you make to the hotel (i.e., what is the order quantity)?
[Round your response up to the nearest integer value, e.g.2.2 and 2.6 should be both rounded up to 3.]
image text in transcribed

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

Operations Management

Authors: Jay Heizer, Barry Render

11th edition

9780132921145, 132921146, 978-0133408010

More Books

Students also viewed these General Management questions