Question
The Happy Tamal Co. promises its customers delivery within four hours an all tamales orders. All tamales are purchased on the prior day and delivered
The Happy Tamal Co. promises its customers delivery within four hours an all tamales orders. All tamales are purchased on the prior day and delivered to the company by 6:00 the next morning, companys daily demand for tamales is as follows:
Number of Tamales Probability
10 0.4
20 0.3
30 0.2
40 0.1
The company purchases tamales for $7 per unit and sells them for $15. All unsold tamales are donated to a local charity society. Store policy is to purchase tamales from a competitor for $15 a unit if a customer orders and the store does not have them. This costs $4 per unit. What is the best quantity to order every single day?
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