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The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy fresh lettuce for $4.00 a box. The lettuce is sold for $10 a box, and the dealer that sells the old lettuce is willing to pay $1.50 a box. Past history says that tomorrows demand for lettuce averages 250 boxes with a standard deviation of 34 boxes. How many boxes of lettuce should the supermarket purchase tomorrow?

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Price of aging produce

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This is what I would do:

1) Buy 284 boxes purchased for $1136 and sold for $2840 giving a maximum profit of $1704. If I sell only 250 boxes, I would need to subtract $8.50 ($10 - $1.50) for 34 boxes or $289 for a profit of $1415. If worse case I only sell 216, then profit would be $1126 ($1415 - $289). Or...

2) ...

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