You own a coffee shop in a metro Toronto shopping mall. It is Friday evening and you are trying to decide how many dozen blueberry muffins to bake for the Saturday morning rush.Based upon your experience with Saturdays, you think that the probability of being able to sell 5 dozen is 0.25, of being able to sell 10 dozen in 0.45, of being able to sell 15 dozen is 0.20 and of being able to sell 20 dozen is 0.10A dozen muffins sells for $10.00 and has an incremental cost of $6.35. If you have leftover muffins, you will sell them to the local food bank for $2.00 per dozen.Use your knowledge of decision analysis to model and solve this problem in order to recommend the number of dozen muffins that should be baked.
You own a coffee shop in a metro Toronto shopping mall. It is Friday evening and you are trying to decide how many dozen blueberry muffins to bake for the Saturday morning rush.Based upon your experience with Saturdays, you think that the probability of being able to sell 5 dozen is 0.25, of being able to sell 10 dozen in 0.45, of being able to sell 15 dozen is 0.20 and of being able to sell 20 dozen is 0.10A dozen muffins sells for $10.00 and has an incremental cost of $6.35. If you have leftover muffins, you will sell them to the local food bank for $2.00 per dozen.Use your knowledge of decision analysis to model and solve this problem in order to recommend the number of dozen muffins that should be baked.
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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You own a coffee shop in a metro Toronto shopping mall. It is Friday evening and you are trying to decide how many dozen blueberry muffins to bake for the Saturday morning rush.
Based upon your experience with Saturdays, you think that the probability of being able to sell 5 dozen is 0.25, of being able to sell 10 dozen in 0.45, of being able to sell 15 dozen is 0.20 and of being able to sell 20 dozen is 0.10
A dozen muffins sells for $10.00 and has an incremental cost of $6.35. If you have leftover muffins, you will sell them to the local food bank for $2.00 per dozen.
Use your knowledge of decision analysis to model and solve this problem in order to recommend the number of dozen muffins that should be baked.
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