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Salvage value scenarios: <15 bananas >14 bananas Probability of having 1 to 15 bananas left over 5% 5% In that case, average # of
Salvage value scenarios: 14 bananas Probability of having 1 to 15 bananas left over 5% 5% In that case, average # of bananas left over that day Probability of having 15 or more bananas left over 7 16 In that case, average # of bananas sold per day Tbd* 338 Tbd* 348 * you need to know the service level for each scenario and the probability of having 1 to 15 bananas left over at the end of a sales day. Vendor information Average daily sales 400 Standard deviation of daily sales 100 Price per banana $1.00 Cost per banana $0.50 Salvage value scenarios a) if between 1 and 15 bananas are left over $0.10 b) if 15 or more bananas are left over $0.20
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