QUESTION 18 5 points (This problem description If for Questions 18, 19, 20) Consider the Newsvendor model. The demand is a discrete random variable with the possible values and corresponding probabilities given in the table below. The unit selling price is $100, unit purchase price is $60 and the unit salvage value is $50. Demand values 100 200 300 400 500 Probability 0.2 0.1 0.3 0.3 0.1 What is the expected/mean demand? 340 200 250 400 300 320 Probability 0.2 0.1 0.3 0.3 What is the optimal (target) service level (critical ratio)? 0.9 0.8 0.7 0.5 0.4 0.6 Demand values Probability 100 0.2 200 0.1 560 and the unit salvage value is $50. 300 400 0.3 0.3 What is the optimal order size to maximize the expected/mean profit? 400 100 200 300 500