Question: Center City Cake Shoppe spends $ 1 5 in making each cake, and has a regular selling price of $ 2 5 . For every
Center City Cake Shoppe spends $ in making each cake, and has a regular selling price of $For every customer facing a stockout, the Cake Shoppe has estimated that there is a goodwill loss of $over and above the lost margin on that saleUnsold cakes at the end of the day are sold below cost, at $ and are always sold off before the store closes for the night."Given this data, is service level the appropriate service level?Remember, their daily demand distribution is:
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