CIMA P1 Question Answer
The daily demand for a perishable product has the following probability distribution:
Each unit of the product costs $6 and is sold for $10.
Unsold items are thrown away at the end of the day.
Orders must be placed each morning before the daily demand is known.
The payoff table below shows the profit that would be earned for each of the combinations of purchases and demand.
The number of units that should be purchased at the beginning of each day in order to maximize expected profit is:
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