1. Felgas, a manufacturer of felt gaskets, has production capacity of 1,000 units per day. Currently, the firm sells production capacity for $5 per unit. At this price, all production capacity gets booked about one week in advance. Some customers have said that they would be willing to pay twice as much ($10 per unit) if Felgas had capacity available on the last day. About 10 days in advance, demand for the high-price segment is normally distributed, with a mean of 250 and a standard deviation of 100. How much production capacity should Felgas reserve for the last day? (0.375 points)

2. The manager at a large manufacturer is planning warehousing needs for the coming year. She predicts that warehousing needs will be normally distributed, with a mean of 500,000 square feet and a standard deviation of 150,000. The manager can obtain a full-year lease at $0.50 per square foot per month or purchase storage space on the spot market. Spot market rates have averaged $0.70 per square foot per month. How large an annual contract should the manager sign? (0.375 points)

3. The GoGo Bunny is a hot toy this Christmas, and the manufacturer has decided to ration supply to all retailers. A large retail chain owns two channelsa discount channel and a high-service channel. The retailer plans to sell the toy at a margin of $4 in the discount channel and a margin of $8 in the high-service channel. The manufacturer sends 100,000 GoGo Bunnies to the retailer. The retailer has forecast that the demand for the toy at the high-service channel is normally distributed, with a mean of 400,000 and a standard deviation of 150,000. How many toys should the retailer send to the high-service channel? (0.375 points)

4. A trucking firm has current capacity of 200,000 cubic feet. A large manufacturer is willing to purchase the entire capacity at $0.10 per cubic foot per day. The manager at the trucking firm has observed that on the spot market, trucking capacity sells for an average of $0.13 per cubic foot per day. Demand, however, is not guaranteed at this price. The manager forecasts daily demand on the spot market to be normally distributed, with a mean of 60,000 cubic feet and a standard deviation of 20,000. How much trucking capacity should the manager save for the spot market? (0.375 points)