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( 2 0 points ) A restaurant sells a snack food called Cheesy Blasters. Cheesy Blasters are essentially nonperishable, and since they are a specialty

(20 points) A restaurant sells a snack food called Cheesy Blasters. Cheesy Blasters are essentially
nonperishable, and since they are a specialty item, customers who experience stockouts are willing
to wait until a future day, i.e., their demands are backordered. Daily demand for Cheesy Blasters
is distributed as N(28.3,7.12). The restaurant orders the product from its supplier each morning.
Unsold Blasters held in inventory overnight incur a holding cost of $0.75 per item, and backorders
incur a penalty of $3.50 per item.
(a) Calculate the optimal base-stock level.
(b) Assuming the restaurant uses the base-stock level from part (a), calculate its type-1 service level.
(c) Now assume that the that the supply lead time is 2 days. Calculate the optimal base-stock level.
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