Question

Your supplier offers a discount for purchase of 100 steaks at a time. You normally sell about 5 steaks a night and you don’t like to use a steak over 4 days old. Should you take advantage of the discount offer?

Answer 1

Answer:

No

Explanation:

n average,  your sales are five units of steaks per night.  Your preference is selling steaks that are not more than four days old. It means that your demand in those four days is 20 steaks.

If you accept the offer for 100 steaks, it will take you 20 days to sell them. In other words, you will have to sell steaks that are 20 days, which is against your will. If you intend to keep selling steaks that are four days old, then you should reject the offer. You can only accept the offer if you can sell at least 20 steaks per day.