Assignment:
Problem
Giant Foods has decided to make 25 roasted chickens for the lunch rush. The store has determined that daily demand will follow the distribution shown in the following table:
|
Daily Demand
|
Probability
|
|
10
|
0.07
|
|
15
|
0.12
|
|
20
|
0.26
|
|
35
|
0.21
|
|
30
|
0.20
|
|
35
|
0.14
|
Each chicken costs Giant Foods $5.50 to make and can be sold for $12. It is possible for Giant Foods to sell any unsold chickens for $5 the next day (assume all unsold chickens are sold the next day regardless of demand).
a. Simulate one month (30 days) of operation to calculate Giant Food's total monthly roasted chicken profit. Replicate this calculation 50 times to compute the average total monthly profit.
b. Giant Foods would like to verify the profitability of making 10, 20, 30, or 40 chickens during the lunch rush. Which quantity would you recommend? Why?