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Manufacturer of several different cheese products

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Reference no: EM131100137

Palmer Cheese Company is a small manufacturer of several different cheese products. One product is a cheese spread sold to retailoutlets. Susan Palmer must decide how many cases of cheese spread to manufacture each month. The probability that demand will be 6cases is 0.1, for 7 cases it is 0.3, for 8 cases it is 0.5, and for 9 cases it is 0.1. The cost of every case is $45, and the priceSusan gets for each case is $95. Unfortunately, any cases not sold by the end of the month are of no value as a result of spoilage.How many cases should Susan manufacture each month?

Reference no: EM131100137

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