units are unsold at the end of the day, the s approximately normally distributed with = μ (a) What is your recommended daily orde technology to answer this question. R Q* = (b) What is the probability that the super P(stockout) = (c) In problems such as these, why woul- the recommended order quantity at 2 Q* = What happens to the supermarket or
units are unsold at the end of the day, the s approximately normally distributed with = μ (a) What is your recommended daily orde technology to answer this question. R Q* = (b) What is the probability that the super P(stockout) = (c) In problems such as these, why woul- the recommended order quantity at 2 Q* = What happens to the supermarket or
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 3SE: The Oxford Dictionary defines the word nominal asa value that is “stated or expressed but...
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Only need help with question “c”
Transcribed Image Text:A perishable dairy product is ordered daily at a particular supermarket. The product costs $1.16 per unit and sells for $1.75 per unit. If
units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is
approximately normally distributed with = 150 and = 30.
(a) What is your recommended daily order quantity for the supermarket? (You may need to use the appropriate appendix table or
technology to answer this question. Round your answer to the nearest integer.)
Q* =
(b) What is the probability that the supermarket will sell all the units it orders? (Round your answer to four decimal places.)
P(stockout) =
(c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find
the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.)
Q* =
What happens to the supermarket order quantity as the rebate is reduced?
The higher rebate -Select-- the quantity that the supermarket should order.
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