Engineering, 07.09.2020 21:01 michellen2020
A small bakery is open from 5:00 a. m. to 8:00 a. m. every day (i. e. 3 hours). The demand is distributed according to Poisson with a rate: lambda= 0.75 loaves per hour. Each bread is sold for $400, while its cost is estimated at $200. At the end of the day, the remaining breads can be auctioned at $80 per unit. If a customer comes in to buy bread and there is none, it is considered a lost sale.
a) Find the number of breads you should schedule each day in order to maximize your expected demand.
b) How much would you be willing to pay for perfect information?
Answers: 1
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