A milk processing plant Oldonyo Kesses Ltd in Rift-Valley desires to determine how many kilograms of butter to produce per day to meet demand. Past...

      

A milk processing plant Oldonyo Kesses Ltd in Rift-Valley desires to determine how many kilograms of butter to produce per day to meet demand. Past records indicate the following patterns of demand:
oldo12022019415.png

Stock levels are restricted to the range 15 – 45 kilograms (in multiples of 5 kg.) and butter left is disposed by giving the employees working in the factory at the end of the day. Cost of production is Sh.44 and selling price is Sh.50 per Kg.

Required:
i) Construct a payoff table.
ii) Determine the production alternative that maximises expected profit

  

Answers


Wilfred
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Wilfykil answered the question on February 20, 2019 at 12:23


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