It would be easier to post it this way

Faced with the demand for me perishable product of blood, hospital managers need to establish an ordering policy that deals with the tradeoff between shortage and wastage. As it turns out, this scenario, referred to as a single-period inventory problem, is well known in me area of operations management and there is an optimal policy. What we need to know is the per-item cost of being short (CS) and the per-item cost of being in excess (CE). In terms of the blood example, the hospital estimams that for every bag short, there is a cost of $80 per bag, which includes expediting and emergency delivery costs. Any transfusion blood bags left in excess at day's end are associated with a $20 per bag cost, which includes the original cost of purchase along with endofa'iay handling costs. With the objective of minimizing longterm average costs, the following critical ratio (CR) needs to be computed: CS CR=7 CS+CE Recognize that (CR) will always be in the range of 0 to 1. It turns out that the optimal number of items to order is the smallest wlue ofk such that P(X g k) is at least the CR value. Refer to the distribution of daily demand for blood bags (X). Bagsused 0 1 2 3 4 5 6 7 8 9 10 ll 12 Probability 0.202 0.159 0.201 0.125 0.088 0.087 0.056 0.025 0.022 0.018 0.008 0.006 0.003 Based on the given values of (CS) and (CE), what is the value of CR? Round to one decimal place. CR Keeping (CE) at $20, for what range of values of (Cs) does the hospital order three bags? Round to two decimal places when necessary. smallest Cs : ' l largest C5 : ' l Given the CR value is 0.8, determine the optimal order quantity of blood bags per day. quantity of blood bags per day