A food grocery purchases mooncakes for seasonal selling. The agent pays $25-per box to the mooncake brand owner for purchasing the mooncakes and sells it to the market at $75 per box. Any unsold stock can be returned to the mooncake brand owner for $10 per box. The mooncake brand owner can reuse the materials for making dim-sum. The food grocery makes the buying decision based on the following observations: Demand 40 50 60 70 80 90 100 110 120 130 Probability 0.04 0.06 0.16 0.18 0.2 0.1 0.1 0.08 0.04 0.04 What is the optimal order quantity and the expected profit for the food grocery?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A food grocery purchases mooncakes for seasonal selling. The agent pays $25-per box to the mooncake brand owner for purchasing the mooncakes and sells it to the market at $75 per box. Any unsold stock can be returned to the mooncake brand owner for $10 per box. The mooncake brand owner can reuse the materials for making dim-sum. The food grocery makes the buying decision based on the following observations:
| Demand | 40 | 50 | 60 | 70 | 80 | 90 | 100 | 110 | 120 | 130 |
| Probability | 0.04 | 0.06 | 0.16 | 0.18 | 0.2 | 0.1 | 0.1 | 0.08 | 0.04 | 0.04 |
What is the optimal order quantity and the expected profit for the food grocery?
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