Use This Information to Answer the Following Questions

question 41

Essay

Use this information to answer the following questions.
A supermarket stocks 150 apple pies each week.Weekly demand for apple pies ranges between 90 and 160 pies,all occurring with equal probability.Each unsold pie incurs an inventory carrying cost of $2.00.Unmet demand costs the supermarket $4.00 per pie.
-Refer to the information above.Suppose that the manager wishes to examine the effect of different stocking levels on the average weekly total costs.In specific,the manager wishes to consider stocking levels of 90 pies,110 pies,130 pies,and 150 pies.Use Crystal Ball's Decision Table to find the stocking level that minimizes average weekly total costs.Use 1000 replications.

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Definitions:

Modified Capitalism

An economic system that incorporates elements of capitalism with various degrees of government intervention or social welfare policies.