A food truck company wants to order a specialty coffee bean for the next three-month demand. Certainly, the food truck company does not want to carry the coffee beans for more than three months, since the taste of the coffee beans will change. The coffee beans will cost the company SAR 60 per kg to purchase. But the company can generate a revenue of SAR 150 per kg of coffee beans purchased. After three months, the coffee beans can be sold to small shops at SAR 40 per kg. Based on previous experiences, the demand for coffee beans can reach up to µ = 180 kg with standard deviation o = 10 kg. a. What is the recommended order quantity? b. What is the probability that the company will sell all coffee beans purchased?

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Chapter2: Second-order Linear Odes
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A food truck company wants to order a specialty coffee bean for the next three-month demand. Certainly, the
food truck company does not want to carry the coffee beans for more than three months, since the taste of the
coffee beans will change. The coffee beans will cost the company SAR 60 per kg to purchase. But the company
can generate a revenue of SAR 150 per kg of coffee beans purchased. After three months, the coffee beans can
be sold to small shops at SAR 40 per kg. Based on previous experiences, the demand for coffee beans can reach
up to µ = 180 kg with standard deviation o = 10 kg.
a. What is the recommended order quantity?
b. What is the probability that the company will sell all coffee beans purchased?
Transcribed Image Text:A food truck company wants to order a specialty coffee bean for the next three-month demand. Certainly, the food truck company does not want to carry the coffee beans for more than three months, since the taste of the coffee beans will change. The coffee beans will cost the company SAR 60 per kg to purchase. But the company can generate a revenue of SAR 150 per kg of coffee beans purchased. After three months, the coffee beans can be sold to small shops at SAR 40 per kg. Based on previous experiences, the demand for coffee beans can reach up to µ = 180 kg with standard deviation o = 10 kg. a. What is the recommended order quantity? b. What is the probability that the company will sell all coffee beans purchased?
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