$.$ Ltd trades in a certain perishable item. Each item costs Tsh$.1,500/=$ and is sold at Tsh$.2,500/=.$ Any item not sold by the end by end of the day is disposed off for Tsh$.1,000/=.$

The company forecasts the following daily demand levels for the items: $20,000/=,30,000/=40,000/=,50,000/=$ and $60,000/=.$

If the most likely demand is the Tsh$\mathrm{.}40,000/=$ item and that the demand for $20,000/=$ units is as half as likely; the demand for $30,000/=$ units is three quarters as likely. The demand for $50,000/=$ units is one quarter as likely and the demand for $60,000/=$ units is half as likely.

REQUIRED

$($a$)$ Use the EMV decision criterion to choose the optimal supply level

$($b$)$ Use the EOL criterion to choose the optimal supply level