Question

the local supermarket buys lettuce each day to ensure really fresh produce. each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. this week, the supermarket can buy fresh lettuce for $12.00 a box. the lettuce is sold for $25.00 a box and the dealer that sells old lettuce is willing to pay $3.50 a box. past history says that tomorrow's demand for lettuce averages 280 boxes with a standard deviation of 46 boxes.how many boxes of lettuce should the supermarket purchase tomorrow?

Answer 1

The supermarket should purchase 326 boxes of lettuce tomorrow.

Step-by-step explanation:

To determine the number of boxes of lettuce the supermarket should purchase tomorrow, we need to consider the demand for lettuce and the standard deviation.

The average demand for lettuce is 280 boxes with a standard deviation of 46 boxes.

To ensure they have enough supply to meet demand, the supermarket should purchase enough boxes of lettuce to cover the average demand plus a safety stock.

One common approach is to add a safety stock equal to one standard deviation.

So, the supermarket should purchase 280 + 46 = 326 boxes of lettuce tomorrow.