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Mom and Pop have decided to open a grocery store. Mom and Pop buy tomatoes every day to ensure fresh produce. Each morning any tomatoes that are left over from the previous day are sold to a nearby restaurant that can use the tomatoes in their soups. Mom and Pop can buy tomatoes from their supplier for $3 per lb. The tomatoes are sold to store customers for $5.5 per pound and the restaurant is willing to pay $1 per pound. You can assume that the demand follows a uniform distribution ~ U(15, 35) pounds per day.

Mom and Pop negotiate with the restaurant and get a better price (2$ per pound). How would this affect your order decision?

Select one: a. Order less b. Order more c. Order the same amount as before d. Cannot tell from the information that is given

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92599731

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