Zack Pop has been a producing plant production manager for the last 10 years. One produce item, zucchini, is sold in cases, with daily sales averaging 400 cases. Daily sales are also assumed to be normally distributed. Furthermore, 85% of the time sales are between 350 and 450 cases. Each case is purchased for $10 wholesale and sells for $15 retail. All cases that are not sold must be discarded. 1) Estimate the standard deviation of the sales distribution. 2) Using the standard deviation found in part a, determine how many cases of zucchini Zach should stock.
Zack Pop has been a producing plant production manager for the last 10 years. One produce item, zucchini, is sold in cases, with daily sales averaging 400 cases. Daily sales are also assumed to be normally distributed. Furthermore, 85% of the time sales are between 350 and 450 cases. Each case is purchased for $10 wholesale and sells for $15 retail. All cases that are not sold must be discarded. 1) Estimate the standard deviation of the sales distribution. 2) Using the standard deviation found in part a, determine how many cases of zucchini Zach should stock.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Zack Pop has been a producing plant
1) Estimate the standard deviation of the sales distribution.
2) Using the standard deviation found in part a, determine how many cases of zucchini Zach should stock.
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