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Do not include anything other than numbers in your responses. For example, do not include comma or dollar sign in your numbers. As a rule

Do not include anything other than numbers in your responses. For example, do not include
comma or dollar sign in your numbers. As a rule of thumb, keep 2 decimal places for larger
numbers and 3 decimal places for smaller numbers less than 1.
Joe's Slop House is a little hole in the wall restaurant that serves slow-cooked barbecue beef
sandwiches. The beef for the sandwiches cooks overnight, so each evening Joe decides how much
beef to cook for the next day. The beef costs $2 a pound and Joe sells each sandwich (filled with 1
pound of beef) for $4.5. At the end of the day, any leftover beef is given to the neighborhood
church for their soup kitchen. The tax deduction for this is worth $0.5 a pound. Daily demand for
the beef can be approximated by a normal distribution with a mean of 270 pounds and a standard
deviation of 40 pounds.
Cost of Shortage (Cs):
Cost of Excess (Ce):
What is the optimal service level?
What is the corresponding z value?
How many pounds of beef should Joe cook for the next day?
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