Eco corporation produces cases of perishable food products
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Eco corporation produces cases of perishable food products
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Eco corporation produces cases of perishable food products. Each case contains an assortment of fruits and farm products. Each case costs $5 and sells for $15. If there are any cases not sold by the end of the day, they are sold to a Loblaws for $3 a case. The probability that daily demand will be 100 cases is 0.3, the probability that daily demand will be 200 cases is 0.4, and the probability that daily demand will be 300 cases is 0.3. Eco corporation has a policy of always satisfying customer demands. If its own supply of cases is less than demand, it buys the necessary fruits form a competitor. The estimated cost of doing this is $16 per case.
