What is the optimal quantity for the jerk store to order

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Reference no: EM133607933

Problem: George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for chicken, pork, and fish. The ingredients and packaging cost $3 and he sells the packets by the case to Jerk Stores in the Caribbean for $5 per packet. Tourists to the islands gladly pay $10 for these packets, eager to host their friends for an authentic Caribbean meal and bore them with vacation photos upon their return. The demand for the packets is normally distributed, with a mean of 1500 packets and a standard deviation of 300. If each Jerk Store location is acting independently, how many packets of seasoning should they order? If George and a single Jerk Store act as a vertically integrated supply chain, what is the optimal quantity for the Jerk Store to order?

Reference no: EM133607933

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