Question
Your supermarket is trying to determine how many meatloaf dinners should be produced on Monday. The Monday demand for meatloaf dinners is normally distributed with
Your supermarket is trying to determine how many meatloaf dinners should be produced on Monday. The Monday demand for meatloaf dinners is normally distributed with a mean of 100 and a standard deviation of 20. The cost of producing a meatloaf dinner is $2.00, and the dinner sells for $7.00. It costs $0.60 at the end of the day to dispose of each unsold dinner. If the only possible production quantities are 100, 110, 120, and 130, run MCS for 1000 iterations. What production quantity would you recommend if i) the supermarket's goal is to maximize the profit and ii) if its goal is to minimize the risk?
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