In this part of the assignment, we revisit the bagel store from Assignment 5. Assume that...

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In this part of the assignment, we revisit the bagel store from Assignment 5. Assume that you open a new store and the daily demand for bagels follows a Uniform distribution with a range [0, 475]. The wholesale price for a bagel is $2.00, and the retail price is $3.00. Any leftover inventory at the end of the day is donated for free. The dynamics are the same as in Assignment 5. Question 1 (3 points) Calculate: 1. The underage and overage costs. 2. The service level (also called the critical ratio) and optimal ordering quantity. 3. The expected sales, lost sales, expected leftover inventory, and expected profit. In this part of the assignment, we revisit the bagel store from Assignment 5. Assume that you open a new store and the daily demand for bagels follows a Uniform distribution with a range [0, 475]. The wholesale price for a bagel is $2.00, and the retail price is $3.00. Any leftover inventory at the end of the day is donated for free. The dynamics are the same as in Assignment 5. Question 1 (3 points) Calculate: 1. The underage and overage costs. 2. The service level (also called the critical ratio) and optimal ordering quantity. 3. The expected sales, lost sales, expected leftover inventory, and expected profit.

Answer rating: 100% (QA)

Answer 1 Underage cost Cu 3... View the full answer