1. One Target store orders milk in 1 gallon package using Newsvendor Model. The demand for the milk follows a normal distribution and the average is 150 units, with standard deviation of 60 units during each order cycle. Retail price of milk is $3 per unit, cost of Target is $2 per unit. Target will mark those left-over milk near expiration date down for $1.5 per unit as speciala sales and Target is always able to sell all left-over milk during those special sales.

a, Assuming this Target orders 250 units, what is expected service level (in-stock probability)? (Please provide step to step details, for z table. use round up for z)

b. Assuming this Target orders 250 units, what is expected on-hand inventory (left-over)? (Please provide step to step details)

c. Assuming this Target orders 250 units, what are expectd sales and expected profit? (Please provide step to step details, inlcuding all revenue and COGS)

d. If this Target store could maximize its profit, what would be the optimal order quantity? (Please provide step to step details, including costs and critical ratio)