Maurice Tutor

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Category > Management Posted 11 Jun 2017 My Price 11.00

spicy balck bean burritos at the Kiosk

Weekday lunch demand for spicy balck bean burritos at the Kiosk, a local snack bar, is approximately Poisson with a mean of 22. The Kiosk charges $4 for each burrito, which are all made before the lunch crowd arrives. Virtually all burrito customers also buy a soda that is sold for $0.60. The burritos cost the Kiosk $2, while sodas cost the Kiosk $0.05. Kiosk management is very sensitive about the quality of food they serve. Thus they maintain a strict " No Old Burrito" policy, so any burrito left at the end of day is disposed of. The problem then gives the Poisson distribution with a mean of 22. Question: Suppose that any customer unable to purchase a burrito settles for a lunch of Pop-Tarts and a soda. Pop-Tarts sell for $.75 and cost the Kiosk $.25. As Pop-Tarts and soda are easiyl stored, the Kiosk never runs out of these essentials. Assuming that the kiosk management is interested in maximizing profits, how many burritos should they prepare?

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Maurice Tutor
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Status NEW Posted 11 Jun 2017 08:06 PM My Price 11.00

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