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Assignment:
As the owner of the Catch-of-the-Day Fish Shop, Kristine can purchase fresh fish at $18 per crate early each morning at the Walton Fish Market. During the day, Kristine then sells these crates of fish to local restaurants for $120 each. Coupled with the perishable nature of her product, Kristine's integrity as a top quality supplier requires her to dispose of all unsold crates at the end of each day. The cost of disposal is $2 per crate. While her life would be a lot easier if Kristine could perfectly predict her daily demand, the best estimate for her daily demand is that it is equally likely to be any integer number between 1 and 20 crates per day. Kristine now purchases 15 crates early each morning at the Walton Fish Market.
1.Given the current order quantity (15 crates), what is the percentage of days that all demand is satisfied by the Catch-of-the-Day Fish Shop?
2.Given the current order quantity (15 crates), what is the percentage of demand that is satisfied by the Catch-of-the-Day Fish Shop?
3.Given the current order quantity (15 crates), what is the daily expected profit of the Catch-of-the-Day Fish Shop?
4.To maximize the daily expected profit of the Catch-of-the-Day Fish Shop, how many crates of fresh fish should Kristine purchase early each morning at the Walton Fish Market?
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