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In this part of the assignment, we revisit the bagel store from Assignment 5. Assume that you open a new store and the daily
In this part of the assignment, we revisit the bagel store from Assignment 5. Assume that you open a new store and the daily demand for bagels follows a Uniform distribution with a range [0, 475]. The wholesale price for a bagel is $2.00, and the retail price is $3.00. Any leftover inventory at the end of the day is donated for free. The dynamics are the same as in Assignment 5. Question 1 (3 points) Calculate: 1. The underage and overage costs. 2. The service level (also called the critical ratio) and optimal ordering quantity. 3. The expected sales, lost sales, expected leftover inventory, and expected profit.
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Essentials Of Business Statistics Communicating With Numbers
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