rontezmalcom36
rontezmalcom36
08.04.2020 • 
Business

Identify the appropriate inventory model to obtain the optimal lot size for the given problem description: A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 40 quarts per day and a standard deviation of 6 quarts per day. The grocer purchases fresh strawberries daily from the local farmer for $1.5 per quart and sells them for $3.20 per quart. At the end of each business day, any remaining strawberries are sold to a producer of fresh juice for 50 cents. a. Single Period b. Fixed Order Interval c. EOQ d. ROP e. None of the above

Solved
Show answers

Ask an AI advisor a question