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Wolverine Air has to decide how many meals to load on its daily 6 pm non-stop flight from Chicago to San Francisco. The meals are sold on board to economy class passengers for $10.00 and cost the airline $4.00 each. All meal orders must be made at least 48 hours before the flight departs. Any meals left over at the end of the flight are tossed into the trash by the ground clean-up crew. Wolverine Air estimates that the demand for the meals on this flight is normally distributed with mean of 20 and standard deviation of 10.

1. How many meals should Wolverine Air order? A. 20 B. 23 C. 27 D. 30

2. Suppose Wolverine Air would like to achieve a 65% in stock probability. Explain whether you expect the order quantity to be less than or greater than part a.

Operation Management, Management Studies

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