How many donuts should be ordered if demand is given


Problem:

Dunkin' Donuts joined many other service providers by centralizing manufacturing. Doughnut making in a geographic area is now done centrally for many stores, and the doughnuts are trucked to stores in the early morning. Imagine the decision of the franchisee: Jellyfilled, sprinkle doughnuts cost $0.10 from the central facility, and sell for $0.60 each, and demand the past 10 days has been 50, 38, 27, 45, 62, 44, 44, 29, 31, 39. Dayold doughnuts are thrown out (hopefully).

Required:

Question 1) How many should be ordered? Solve the problem and show all work.

 

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Operation Management: How many donuts should be ordered if demand is given
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