Mr Flynn a market stall selling vegetables and fruit. He buys a product for $20 per case.He can sell the product for $40 per case on his stall. The product is perishable and it is not possible to store it, instead any cases unsold at the end of the day can be sold off as scrap for $2 per case.Purchase orders must be made before the number of sales is known. He has kept records of demand over the last 150 days.Demand/day number of days10 4520 7530 30Required:Prepare a summary of possible net daily margins using a payoff table.(b) Advise Mr Fyvestall:How many cases to purchase if he uses expected values.(ii) How many cases to purchase if he uses maximin / maximax.(iii) How many cases to purchase if he uses minimax regret.
Mr Flynn a market stall selling vegetables and fruit. He buys a product for $20 per case.He can sell the product for $40 per case on his stall. The product is perishable and it is not possible to store it, instead any cases unsold at the end of the day can be sold off as scrap for $2 per case.Purchase orders must be made before the number of sales is known. He has kept records of demand over the last 150 days.Demand/day number of days10 4520 7530 30Required:Prepare a summary of possible net daily margins using a payoff table.(b) Advise Mr Fyvestall:How many cases to purchase if he uses expected values.(ii) How many cases to purchase if he uses maximin / maximax.(iii) How many cases to purchase if he uses minimax regret.
