4. Each day, Big Boat Flowers, a floral retailer, stocks fresh-cut calla lilies. Each flower costs $0.40 and sells for $00. Big Boat Flowers never reduces the selling price. At the end of each day, any unsold calla lilies are given to a nearby church. Big Boat Flowers estimates daily demand characteristics as follows:
Demand (units) |
Probability |
0 |
5% |
100 |
20% |
200 |
40% |
300 |
25% |
400 |
10% |
4. Each day, Big Boat Flowers, a floral retailer, stocks fresh-cut calla lilies. Each flower costs...
Each day, Big Boat Flowers, a floral retailer, stocks fresh-cut calla lilies. Each flower costs $0.40 and sells for $1.00. Big Boat Flowers never reduces the selling price. At the end of each day, any unsold calla lilies are given to a nearby church. Big Boat Flowers estimates daily demand characteristics as follows: Demand (units) Probability 0 5% 100 20% 200 40% 300 25% 400 10% How many calla lilies should Big Boat Flowers purchase each day to maximize expected...