Problem 1 Dominick's in Oak Park, IL buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy fresh lettuce for $4.00 a box. The lettuce is sold for $10.00 a box and the dealer that sells old lettuce is willing to pay $1.50 a box. Past history says that tomorrow's demand for lettuce averages 250 boxes with a standard deviation of 34 boxes. How many boxes of lettuce should the supermarket purchase tomorrow? Problem 2 Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has estimated that each order costs $25 to place. Using the EOQ model, what Model would Ray use and what is his Inventory Management policy? Problem 3 Papagino's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. Because the orders are shipped directly from Italy, they take three weeks to arrive. Papagino's Pizza uses an average of 150 pounds of pepperoni each week, with a standard deviation of 30 pounds. Papagino's prides itself on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 98 percent probability of not stocking out on pepperoni. Assume that there are currently 500 pounds of pepperoni in the walk-in cooler. What is the inventory management policy of Papagino's?