What is the service rate ? How many churros should Ricky produce for the upcoming game?
INVENTORY MANAGEMENT
ANSWER ALL QUESTIONS AND SHOW WORK. FOR QUESTION 3 MAKE SURE TO SUPPORT YOUR RESPONSE WITH ADDITIONAL REFERENCES
ANSWER THE FOLLOWING QUESTIONS:
The Churrozilla FOOD Truck produces specialty churros that are primarily sold at special events, such as football games and concerts. Ricky, the owner, is trying to decide how many to produce for an upcoming game. During the game, Ricky can sell Churros for $3 each . His competition is selling soft pretzels for $9 each, so Ricky thinks he’s giving the fans a bargain. Ricky’s estimate of demand for churros is the following:
Demand Probability
1800 dozen 0.05
2000 0.10
2200 0.15
2400 0.25
2600 0.30
2800 0.10
3000 0.05
Questions: Show all work
What is the service rate ?
How many churros should Ricky produce for the upcoming game?
Tina’s Coffee Emporium wishes to determine the best order size for its best -selling Barista Espresso maker by Gastroback. Tina has estimated the annual demand for this model at 7600 units. Her cost to carry one unit is $100 per year per unit, and she has estimated that each order costs $20 to place.