(a) Tammy’s Bakery ensures all the swiss rolls sold to customers are freshly made each day. Swiss rolls not sold after 8pm will be sold at 50% discount off the regular $10 price. The cost of baking swiss roll is $7. Demand in terms of number of swiss rolls is estimated to be normally distributed, with a mean of 35 andstandard deviation of 7. Calculate the optimal number of Swiss rolls to be made each day.

(b) One of the major ingredients of the swiss roll isgluten-free flour. Usage of this flour average at 300 pounds per month. Tammy’s Bakery is currently paying $3.40 for each pound;carrying cost is 20% of the unit cost; ordering cost is $25. A newsupplier has offered the same product at $3 if Tammy’s Bakery buysat least 2,400 pounds per order.

Examine whether Tammy’s Bakery should stick to the same supplier or take advantage of the quantity discount. Justify your answer with the appropriate calculations. (Hint: find the totalinventory cost.)