Question: Question 5: 10 points Jack Schoppe is evaluating two locations for starting a Quiz Yes toasted sub outlet. The demand in location A is

Question 5: 10 points Jack Schoppe is evaluating two locations for starting

Question 5: 10 points Jack Schoppe is evaluating two locations for starting a Quiz Yes toasted sub outlet. The demand in location A is normally distributed with a mean of 150 subs a day with a standard deviation of 50. Location B's daily demand averages at 160 with a standard deviation of 75. In both locations Jack will be able to sell his subs for $8.00 each. The meat/veggies for the subs cost about $3.00 per sub. Since they can be refrigerated, meat and veggies can be stored without wastage if there are leftovers at the end of a business day. If he opens one of the outlets, Jack must order fresh breads (for subs) everyday from a centralized Quiz Yes Bakery and dispose of the remaining breads at the end of the day. The Bakery charges $2.00 per bread. 1. How many units of bread should Jack buy per day from the Bakery if he opens an outlet in location A? 2. How many units of bread would he need to order in location B? 3. Suppose Jack's supplier is willing to buy unsold bread back from him at the end of the day for $1.00 each. How many units of bread should Jack buy for location A and location B respectively?

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