Question: QUESTION 23 (10 points) - Single-Period Inventory Model - Uniform Distribution Yummy Burritos (YB) sells gourmet burritos during the weekday lunch hour. Yummy Burritos charges

QUESTION 23 (10 points) - Single-Period Inventory
QUESTION 23 (10 points) - Single-Period Inventory Model - Uniform Distribution Yummy Burritos (YB) sells gourmet burritos during the weekday lunch hour. Yummy Burritos charges $9.00 for each burrito and all burritos are made before the lunch crowd arrives. The burritos cost YB $2.80 each. For a high food safety standard, any burrito left at the end of the day is discarded. Based on YB s operations history over years, daily demand is known to be uniformly distributed from 58 to 87 burritos. You would need to show equations, steps, final results with units, and sketches for full credits. Quantity results are in rounded-up numbers of burritos. For simplicity, all taxes and other costs are not considered. (a)[3] To maximize expected profit, how many burritos should YB make every day (rounded up)? Calculate the corresponding effective service level (a percentage with 1 decimal, e.g. 23.4\%). (b)[2] Draw a sketch of the uniform demand distribution to illustrate the business situation in part (a). Make sure to have the relevant information in the sketch. (c)[3] To achieve roughly 80% service level, how many burritos should YB make every day (rounded up)? Calculate the corresponding effective service level (a percentage with 1 decimal). (d)[2] Draw another sketch of the uniform demand distribution to illustrate part (c)

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