Problem 2: Every time I pass by Malik's bookstore, I see one of their employees taking stock of their magazines. I was eager to discover their inventory policy, especially on "Business and Finance" magazines. Can you help me out? Let us assume that they can purchase the magazines from a distributor for $7 and sell the magazines in the month that they are relevant for $11. Once the month has passed the distributor offers a buy-back policy that allows Malik's to sell them back to the distributor for $3.5. (a) Which type of inventory model should we use? (b) In these conditions, what is the optimal service level that Malik's bookstore should target? (c) Assuming that demand for "Business and Finance" magazines follows a normal distribution with a mean of 14 and a standard deviation of 2, what is the optimal number of magazines that Malik's should stock cach month? (d) If the distributor didn't offer a buy-back policy, what would be the optimal number of magazines that Malik's should stock each month? (e) Let us suppose you are the magazines distributor, would you opt for a buy-back policy or prefer to not adopt such policy? (1) Now let us suppose you are the owner of Malik's bookstore and you will not accept a stockout risk more than 2.5%. Accordingly, you will search for another distributor who might offer a better buy-back policy. What discount price should the new magazines distributor offer to Malik's to be selected among other potential distributors