Eagles Flora is a fresh flower shop in Washington DC$.$ The manager of the shop is

deciding how many bouquets of fresh flowers to order for the upcoming

weekend. The flowers are used to create beautiful arrangements that are in high

demand, but the shop has experienced fluctuations in demand in the past due to

factors such as seasonal changes and local events.

Using historical data and expert judgment, the flower shop estimates that the

demand for the weekend is normally distributed with a mean of $200$ bouquets and

a standard deviation of $50$ bouquets. Each bouquet is sold for $$40.$ The manager

has two suppliers for the fresh flowers with the following offerings:

Supplier A: It costs the supplier $$10$ per bouquet to provide fresh flowers. The

supplier sells each bouquet to the shop at $$20.$ If there are any unsold bouquets,

the supplier buys them back at $$5$ per bouquet and composts it at no cost$.$

Supplier B: It costs the supplier $$12$ per bouquet to provide fresh flowers. The

supplier sells each bouquet to the shop at $$24.$ If there are any unsold bouquets,

the supplier buys them back at $$8$ per bouquet and sells the returned flowers as

organic compostable material for $$1$ per bouquet.

Both suppliers only prepare as many bouquets as the flower shop orders $--$

nothing more, nothing less.

The manager will order the flower from only one of these suppliers. Answer the

following questions based on the information provided. Use the Excel spreadsheet

for the Newsvendor Problem, if$/$when needed.

a$)$ Analysis for Supplier A: The manager will use the newsvendor model to

determine how many bouquets to order from Supplier A for the weekend. The

manager is interested in maximizing the expected profits. Complete Table Q$3-$A$.$

You must show all the work you do as you calculate each value. You can also use

Excel to carry out the calculations. Compute the parameters or the performance

with respect to the flower shop's inventory decisions and inventory performance,

unless noted otherwise.

b$)(10$ points$)$ Analysis for Supplier B: The manager will use the newsvendor

model to determine how many bouquets to order from Supplier B for the

weekend. The manager is interested in maximizing the expected profits. Complete

Table Q$3-$B$.$ You must show all the work you do as you calculate each value. You

can also use Excel to carry out the calculations. Compute the parameters or the

performance with respect to the flower shop's inventory decisions and inventory

performance, unless noted otherwise.

c$)(2$ points$)$ Which option is better for the flower shop? Discuss by providing any

numbers necessary based on your analysis in parts a and b$.$

NOTE$-1$: SHOW ALL YOUR WORK. USE $4$ DECIMAL PLACES IN ALL CALCULATIONS.

MAKE SURE YOU CLEARLY LABEL AND HIGHLIGHT YOUR ANSWERS TO EACH

QUESTION