Answer:
The supermarket should purchase 251 boxes of lettuce tomorrow.
Step-by-step explanation:
Let <em>X</em> = number of boxes of lettuce that the supermarket should purchase tomorrow
The information provided is:
Cost price per box = $8.00
Selling price per box = $16.00
The amount paid by the dealer for selling old lettuce per box (Salvage price) = $1.80
The mean number of boxes demanded for lettuce is, <em>μ</em> = 245.
The standard deviation of the number of boxes demanded for lettuce is, <em>σ</em> = 38.
Excess cost per box is,
Shortage cost per box is,
Compute the level of service as follows:
For the service level value the <em>z</em>-value is,
<em>z</em> = 0.1596
*Use a <em>z</em>-table.
Compute the value of <em>x</em> as follows:
Thus, the supermarket should purchase 251 boxes of lettuce tomorrow.