Demand for whole turkey at County Market store
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Demand for whole turkey at County Market store during the Thanksgiving break can be approximated by a normal distribution with an average of 55 pounds and a standard deviation of 10 pounds. The turkey sells for $5 per pound, and the unit cost to the store is $1.8 per pound. For any leftover turkey after thanksgiving, the store will donate to local community center which results in a small tax deduction that is worth $0.20 per pound.
Find the optimal stocking level for the turkey for the Thanksgiving week and the expected profit based on the optimal stocking level.
12 years ago
County Market store Solution
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- county_market_store_solution.xlsx