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A convenience store sells spicy black bean burritos during the weekday lunch hour. It charges $ 6 . 0 0 for each burrito and the

A convenience store sells spicy black bean burritos during the weekday lunch hour. It charges $6.00 for each burrito and the burritos
are purchased from a local manufacturer for $1.75 each. Any burritos left at the end of the day are disposed of and have no salvage
value. The manufacturer's production cost is $1.00 per burrito. Burrito demand follows a normal distribution with a mean of 200 and a
standard deviation of 40.
Suppose burrito customers buy their snack somewhere else if the convenience
a. store is out of stock. How many burritos should the convenience store order for the
lunch crowd?
b. What quantity of burritos should be ordered to maximize the expected supply chain
profit?
(Round your answer to the nearest unit.)
What is the minimum buyback price the manufacturer could offer the conveneince
c. store in order to get them to order the optimal supply chain quantity of burritos from
part (b)?
(Round your answer to two decimal places.)
d. Suppose the Kiosk makes 300 burritos. What is the probability that some customer
is unable to purchase a burrito?
(Round your answer to 4 decimal places.)
e.
If the Kiosk wants to be sure it has inventory for its customers with at least a 0.985
probability, how many burritos should it make?
(Round your answer to the nearest unit.)
Suppose that any customer unable to purchase a burrito settles for a lunch of Pop-
f.
Tarts. Pop-Tarts sell for 75 and cost the Kiosk 25.(As Pop-Tarts are easily
stored, the Kiosk never runs out.) Assuming that the Kiosk management is
interested in maximizing profits, how many burritos should it make?
(Round your answer to the nearest unit.)
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