Jane Parton, the proprietor of Deli Parton, sells specialty breads for $3.95 each.  She buys these from a baker-supplier for $2.45 per unit.

Since Jane wants to maintain Deli Parton's reputation for freshness, she refuses to sell day-old bread.  The baker-supplier had agreed to buy back all the unsold bread at the end of each day for $1.25 per loaf.

Jane wants to know how many loaves of bread to order each day if she knows that demand for the specialty bread on any given day can range from 10-20 loaves (inclusive).

Jane tells her friends, Megan and Frank, that, on the basis of a logical analysis of daily business, she has decided to purchase 20 loaves of bread at the start of each business day.  Both her friends advise her against this decision.

Megan tells Jane that she should stock 16 loaves of bread, but Frank tells Jane that she should stock only 10 loaves of bread.  All three have completed the BU275 course, and have based their decisions on analyses using methods from this course.

a.  Using all the different methods that you have learnt in this course to solve these kinds of problems, list the decisions you would make based on each method.  

b.  Which method was used by Jane?

c.  Which method was used by Megan?

d.  Which method was used by Frank?

Posted Date: 4/1/2013 2:32:14 AM | Location : United States

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