Farmer’s Fridge is concerned with stocking the fridge at the…
Farmer’s Fridge is concerned with stocking the fridge at the Metropolitan Museum. Table 1. gives prices, costs, expected demands and standard deviation in demands for the three types of salads. Table 1. Price, cost, expected demand and standard deviation in demand for each product Product Price Cost Mean Std Dev Steakhouse Chopped Salad $15.00 $5.00 20 25 Apple Pecan Salad $10.00 $3.00 60 30 Greek Salad $12.00 $4.00 60 20 Assume Normal Distributions. The fridge at the Metropolitan Museum holds at most 150 salads. Question: How should the company stock the fridge to maximize its expected profits? Ignore integrality. Number of Steakhouse Chopped Salads to stock: Number of Apple Pecan Salad to stock: Number of Greek Salads to stock: Question: What are the company’s maximum expected Revenues? Question: What fraction (%) of the products the company stocks should the company expect to compost?