A food truck company wants to order a specialty coffee bean for the next three-month demand. Certainly, the food truck company does not want to carry the coffee beans for more than three months, since the taste of the coffee beans will change. The coffee beans will cost the company SAR 60 per kg to purchase. But the company can generate a revenue of SAR 150 per kg of coffee beans purchased. After three months, the coffee beans can be sold to small shops at SAR 40 per kg. Based on previous experiences, the demand for coffee beans can reach up to µ = 180 kg with standard deviation o = 10 kg. a. What is the recommended order quantity? b. What is the probability that the company will sell all coffee beans purchased?

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
icon
Related questions
Question

Help me fast with detail explanation.

Definitely I will give Upvote.

A food truck company wants to order a specialty coffee bean for the next three-month demand. Certainly, the
food truck company does not want to carry the coffee beans for more than three months, since the taste of the
coffee beans will change. The coffee beans will cost the company SAR 60 per kg to purchase. But the company
can generate a revenue of SAR 150 per kg of coffee beans purchased. After three months, the coffee beans can
be sold to small shops at SAR 40 per kg. Based on previous experiences, the demand for coffee beans can reach
up to µ = 180 kg with standard deviation o = 10 kg.
a. What is the recommended order quantity?
b. What is the probability that the company will sell all coffee beans purchased?
Transcribed Image Text:A food truck company wants to order a specialty coffee bean for the next three-month demand. Certainly, the food truck company does not want to carry the coffee beans for more than three months, since the taste of the coffee beans will change. The coffee beans will cost the company SAR 60 per kg to purchase. But the company can generate a revenue of SAR 150 per kg of coffee beans purchased. After three months, the coffee beans can be sold to small shops at SAR 40 per kg. Based on previous experiences, the demand for coffee beans can reach up to µ = 180 kg with standard deviation o = 10 kg. a. What is the recommended order quantity? b. What is the probability that the company will sell all coffee beans purchased?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Linear Equations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Algebra for College Students
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Intermediate Algebra
Intermediate Algebra
Algebra
ISBN:
9781285195728
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax
Elementary Algebra
Elementary Algebra
Algebra
ISBN:
9780998625713
Author:
Lynn Marecek, MaryAnne Anthony-Smith
Publisher:
OpenStax - Rice University
Algebra: Structure And Method, Book 1
Algebra: Structure And Method, Book 1
Algebra
ISBN:
9780395977224
Author:
Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:
McDougal Littell