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Question B1 Texas Rotisserie Chicken Ltd. sells pre-packed food. The company needs to know how many packs of Caesar salad to have at hand each

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Question B1 Texas Rotisserie Chicken Ltd. sells pre-packed food. The company needs to know how many packs of Caesar salad to have at hand each day. Each pack costs 2.40 and is sold to customers for 3.10. Unsold packs of Caesar salad are worthless at the end of the day with the exception of those packs that are stored in a shop fridge and collected by a supplier every evening. The capacity of the fridge is 80 packages. The following demands were found after studying the last three months' sales: 100 packs - 10 % of the time 150 packs 10 % of the time 200 packs 15 % of the time 250 packs 40 % of the time 300 packs 25 % of the time Every morning Texas Rotisserie Chicken orders Caesar salad from a supplier that offers only a shipment containing 50 packs (for example, 150 packs consist of 3 shipments). Delivery costs of one shipment are 15, processing costs of each order are 4. Required: Calculate the number of packs of Caesar salad that would maximize Texas Rotisserie Chicken's daily profit. (35 marks) Continued on next page .... Question B1 Texas Rotisserie Chicken Ltd. sells pre-packed food. The company needs to know how many packs of Caesar salad to have at hand each day. Each pack costs 2.40 and is sold to customers for 3.10. Unsold packs of Caesar salad are worthless at the end of the day with the exception of those packs that are stored in a shop fridge and collected by a supplier every evening. The capacity of the fridge is 80 packages. The following demands were found after studying the last three months' sales: 100 packs - 10 % of the time 150 packs 10 % of the time 200 packs 15 % of the time 250 packs 40 % of the time 300 packs 25 % of the time Every morning Texas Rotisserie Chicken orders Caesar salad from a supplier that offers only a shipment containing 50 packs (for example, 150 packs consist of 3 shipments). Delivery costs of one shipment are 15, processing costs of each order are 4. Required: Calculate the number of packs of Caesar salad that would maximize Texas Rotisserie Chicken's daily profit. (35 marks) Continued on next page

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