Suppose You Are Positioning "Meals Ready to Eat" (MREs) for Humanitarian

question 20

Multiple Choice

Suppose you are positioning "meals ready to eat" (MREs) for humanitarian aid, in an area prone to experiencing hurricanes.If a hurricane occurs, the number of MREs that might be demanded by affected residents of the area is normally distributed with a mean of 10,000 and a standard deviation of 500.MRE's cost $1 each to purchase and store.In the event of a hurricane, unused MREs are unlikely to be needed again before they spoil, in which case they must be disposed of at a cost of $0.25 per MRE.If during a hurricane there are not enough stored MREs to meet people's needs, then more MRE's can be purchased and quickly shipped in to the site at a cost of $8 each.How many MREs should you preposition in anticipation of a hurricane? (pick the number closest to the correct answer)

• A)11,000
• B)10,980
• C)10,520
• D)10,640

---

Definitions:

Oral Auctions

Public sales where goods or services are sold to the highest bidder through verbal bids.

Withhold Information

The act of intentionally not sharing information that may be relevant or required by others for decision-making or other purposes.

Common-value Auction

An auction format where the item for sale has essentially the same value to all bidders, but the exact value is unknown until after the purchase.

Exact Value

The precise numerical quantity or measurement of an item or variable, often crucial in calculations or analyses.