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1. You are selling fresh flowers, and if you can't sell them today, they aren't worth very much tomorrow. The number of bouquets you sell is normally distributed with a mean of 200 and a standard deviation of 30 bouquets. You pay $15 for each bunch of flowers, and you can sell each fresh bunch for $50. If you can't sell it today, you can salvage it to the local mulching coop for $12 per bouquet. At optimality, how many bouquets should you order for each day? Round your answer to the nearest integer.
2. As a cost cutting measure, the owner has decided to reduce the purchasing clerk's hours. As a result, the average cost of him placing one order has been reduced to $16.00. Given that the demand for boxes of envelopes remains at 316 per year and you will be keeping each order quantity at 39, what is the annual ordering cost?
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Review the case of Meinhard v. Salmon. Suppose that Salmon had disclosed Gerry's proposal to Meinhard, who had said that he was not interested. Would the result in this case have been different? Walter Salmon negotiated a twenty-year lease for the Ho..
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