As a fundraiser the theater club gets to run a concession st

As a fund-raiser, the theater club gets to run a concession stand at three baseball games in the spring. In order to offer something different, they plan to grill hamburgers and hot dogs outside and bring them into the concession stand to sell. Celia, the chair of the fund-raising committee, is concerned about having the dogs and burgers sit too long in the concession stand, and then not looking very good to customers. She has decided that, on average, there should be eight dogs and six burgers on hand in the concession stand. In what quantities should the burgers and dogs be delivered to the concession stand?

Solution

Average level of inventory for a period is the average of the beginning and ending period levels. In this case, Celia has decided the average inventory to be eight hot dogs and six hamburgers.

As Celia does not want the products to sit on the concession table for long time, final inventory should be zero for both hot dogs and hamburgers.

For hot dogs,

Average inventory = (Initial inventory of hot dogs + final inventory of hot dogs) / 2

8 = (initial inventory of hot dogs+ 0) / 2

Hence initial inventory of hot dogs = 16

In the same way for Hamburgers,

6 = (initial inventory of hamburgers + 0) / 2

Initial inventory of hamburgers = 12

Hence 16 hotdogs and 12 hamburgers should be delivered to the concession table.