2 points CPG Bagels starts the day with a large production run of bagels. Throughout the morning, additional bagels are produced as needed. The last bake is completed at 3p.m. and the store closes at 8 p.m. It costs approximately $0.25 in materials and labor to make a bagel. The price of a fresh bagel is $0.60. Bagels not sold by the end of the previous day are sold the next day as "day old bagels in bags of six for $0.99 a bag. About two-thirds of the day-old bagels are sold; the remainder are just thrown away. There are many bagel flavors, but for simplicity, concentrate just on the plain bagels. The store manager predicts that demand for plain bagels from 3 p.m. until closing is normally distributed with a mean of 51 and a standard deviation of 25. Use Table 13.4. eBook Print If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method. How many bagels should the store have at 3p.m. to maximize the store's expected profit (from sales between 3p.m. until closing)? (Hint: Assume day-old bagels are sold for $0.99/6 = $0.165 each, that is, don't worry about the fact that day-old bagels are sold in bags of six.) Use Table 13.4 and round-up rule. References a. (Round your answer to a whole number.) Suppose the store manager has 97 bagels at 3p.m. How many bagels should b. the store manager expect to have at the end of the day? Use Table 13.4 and round-up rule. Suppose the manager would like to have a 0.99 in-stock probability on demand c. that occurs after 3 pm. How many bagels should the store have at 3p.m. to ensure that level of service? Use Table 13.4 and round-up rule