Note: Treat each product as a separate problem and follow the solution procedure of the similar problem I did in the class. Contact me on Monday should you need help. 1. You start your own company, AM-Logistics. Your company got a contract from military to supply two products, AM1 and AM2. Your normal production cost is $40 per unit to produce each of the products and sell them to your customer (military) for $70 per unit. The monthly demand for the two products and their probabilities are stated below. Demand (units) AM1 (probability) AM2 (probability) 100 0.2 0.2 200 0.2 300 0.5 0.3 400 0.2 0.3 You are required to determine the production capacity of each product. If the demand is more than your normal capacity in a month, you need to work overtime and purchase your supplies and raw material for your products at a premium and your production costs goes up to $80 per unit rather than just $40. Note that you must meet your customer's demand every month. If military demand is less than your capacity, you can always sell either product to another customer for $35 per unit. Your objective is to maximize profits from making and selling each product. a. Determine the optimal capacity for PM1 and PM2. b. Determine the cost of perfect information for each product