Michael runs a kitchen that provides food for various canteens throughout a large organization. A particular salad is sold to the canteen for $10 and costs $8 to prepare. Therefore, the contribution per salad is $2. The kitchen must prepare the salads in batches of 10. The manager has asked you to decide how many salads the kitchen should supply for each day of the forthcoming year. using the payoff table and probabilities given. Daily Supply 40 salads 50 salads 60 salads 70 salads 40 salads 80 0 -80 -160 Daily 50 salads 80 100 20 -60 Demand 60 salads 80 100 120 40 70 salads 80 100 120 140 Prob(x) 0.1 0.2 0.4 0.5 What decision would you make to maximize the expeted monetary value?
Michael runs a kitchen that provides food for various canteens throughout a large organization. A particular salad is sold to the canteen for $10 and costs $8 to prepare. Therefore, the contribution per salad is $2. The kitchen must prepare the salads in batches of 10. The manager has asked you to decide how many salads the kitchen should supply for each day of the forthcoming year. using the payoff table and probabilities given. Daily Supply 40 salads 50 salads 60 salads 70 salads 40 salads 80 0 -80 -160 Daily 50 salads 80 100 20 -60 Demand 60 salads 80 100 120 40 70 salads 80 100 120 140 Prob(x) 0.1 0.2 0.4 0.5 What decision would you make to maximize the expeted monetary value?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Michael runs a kitchen that provides food for various canteens throughout a large organization. A particular salad is sold to the canteen for $10 and costs $8 to prepare. Therefore, the contribution per salad is $2.
The kitchen must prepare the salads in batches of 10.
The manager has asked you to decide how many salads the kitchen should supply for each day of the forthcoming year. using the payoff table and probabilities given.
| Daily Supply | |||||
| 40 salads | 50 salads | 60 salads | 70 salads | ||
| 40 salads | 80 | 0 | -80 | -160 | |
| Daily | 50 salads | 80 | 100 | 20 | -60 |
| Demand | 60 salads | 80 | 100 | 120 | 40 |
| 70 salads | 80 | 100 | 120 | 140 | |
| Prob(x) | 0.1 | 0.2 | 0.4 | 0.5 |
| What decision would you make to maximize the expeted monetary value? |
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