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U ur Restaurant in K z lay is trying to decide how many Turkish bagels ( simit ) to buy for Saturday morning to serve

Uur Restaurant in Kzlay is trying to decide how many Turkish bagels (simit) to buy for Saturday morning to serve for the breakfast. The bagels are purchased fresh in the morning from the supplier, Simit Factory (SF). Uur buys the bagels from Simit Factory for 2.5 TL/bagel and sells them for 5 TL/bagel between 8AM to 12:00 Noon, during the breakfast time. Unsold bagels are salvaged for 0.30 TL/bagel after 12:00 Noon. The unit production cost of Simit Factory is 1TL/bagel. Uur estimates that the demand for bagels on Saturday mornings is normally distributed with mean 400 and standard deviation 100.
a. How many bagels should Uur order to maximize his expected profit? What is the expected profit of Uur?
b. How many bagels should Uur order to maximize the total supply chain profit?
Simit Factory is thinking of offering the following deal to Uur. At the end of every day, the supplier will buy back the unsold bagels at a pre-determined price of 1.5TL/bagel. Shipment cost is negligible.
c. How many bagels should Uur order to maximize his expected profits given the buyback offer? What is the expected profit of Uur?
d. Assume the supplier is able on average to earn 0.50TL on each returned bagel. Given the order quantity in part c, what is the suppliers expected profit?

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