What daily order quantity for ground beef is optimal

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A large burger restaurant buys ground beef at $3 per kg. The restaurant's policy is to use meat that is fresh daily. Any leftover meat at the end of each day is sold to the local zoo for $2 per kg. Eight burgers can be prepared from each kilogram of meat. Burgers sell for $2 each. Labour, overhead, meat, buns, and condiments altogether cost $1 per burger. Demand for ground beef is Normally distributed with a mean of 400 kg per day and a standard deviation of 50 kg per day. What daily order quantity for ground beef is optimal? Refer Table B.

Reference no: EM132909532

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