Teresa Granger is the manager of Chicago Cheese, which produces cheese spreads and other cheese-related products. E-Z
Question:
Teresa Granger is the manager of Chicago Cheese, which produces cheese spreads and other cheese-related products. E-Z Spread Cheese is a product that has always been popular. The probability of sales, in cases, is as follows:
DEMAND (CASES) PROBABILITY
10 ..............0.2
11 ..............0.3
12 ..............0.2
13 ..............0.2
14 ..............0.1
A case of E-Z Spread Cheese sells for $100 and has a cost of $75. Any cheese that is not sold by the end of the week is sold to a local food processor for $50.
Teresa never sells cheese that is more than a week old. Use marginal analysis to determine how many cases of E-Z Spread Cheese to produce each week to maximize average profit.
Step by Step Answer:
Quantitative Analysis For Management
ISBN: 162
11th Edition
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna