Posted by **trai** on Friday, July 19, 2013 at 7:14pm.

A perishable diary product is ordered daily at a particular supermarket. The product, which cost $1.19 per unit, sells for $1.65 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 normal distributed with μ = 150 and σ = 30. 1. What is your recommended daily order quantity for the supermarket? 2. What is the probability that the supermarket will sell all the units it orders? 3. In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate of, say, .25₡ per unit? What happens to the supermarket order quantity as the rebate is reduced?

## Answer This Question

## Related Questions

- business - The Springer Company sells its product for $20 per unit. Its fixed ...
- Accounting - Cambridge Manufacturing Company, Inc. has 200 labor-hours available...
- CVP Analysis - Business Math - Engineering estimates show that the variable cost...
- accounting - Pattillo Industries makes a product that sells for $25 a unit. The ...
- accounting - Mia Enterprises sells a product for $90 per unit. The variable cost...
- accounting - ABC's Product information Current Product Expansion Product (...
- please help - 1.suppose that the demand forecast indicate that 1800 units of the...
- college statistic and algebra - 1.suppose that the demand forecast indicate ...
- Introduction programing visual basic - break even analysis. suppose a certain ...
- finance - Laird Company sells coffee makers used in business offices. Its ...

More Related Questions