Florida MBA Program MAN 5501 - Operations Management Managing Long Shelf-life Product Capacity Assignment (10% of course grade) Please show all answers using the 2 decimal places convention (do NOT round an intermediate or final answer to a whole number). Remember to show all work leading to the final answer. Problem 1 Supreme Cola is a supplier of fountain equipment to restaurants, bars and cafeterias. The fountain equipment is manufactured at their York PA plant site. A national distribution center (DC) for fountain equipment is also maintained adjacent to the plant. For managing inventories of fountain equipment, the company would like to use the Order-up-to approach at their DC. Weekly demand for fountain equipment at the DC is normally distributed with mean = p = 100 units and standard deviation = = 35 units; supplier lead time = L = 3 weeks; \"cost of a backorder/week as $ 200 per unit; and cost to hold inventory/week is $ 300 per unit. The DC manager would like to explore the impact of using the Order-up-to approach using: (a) a desired in-stock probability of 95%; or (b) a desired fill-rate of 95%. For each performance measure, you are required to determine the order-up-to level S*, expected cost of backorders, and expected cost of on-hand inventory. Present your results (showing all work) in the Table below. Performance Optimal Expected | Expected Exp. On-hand | Exp. Cost of measure Order-up- | backorder | cost of inventory on-hand to Level S* | (units) backorders | (units) inventory ($) ($) Desired In-stock Probability = 95% Desired Fill Rae = 95%