Question: Demand for devil s food whipped - cream layer cake at a local pastry shop can be approximated using a Poisson distribution with a mean

Demand for devil s food whipped - cream layer cake at a local pastry shop can be approximated using a Poisson distribution with a mean of 3 . 8 ?per day. The manager estimates it costs $ 1 4 ?to prepare each cake. Fresh cakes sell for $ 1 7 . ?Day - old cakes sell for $ 1 4 ?each. Use Table C .
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a - 1 . ?Assume one - half of the day - old cakes are sold, and the rest thrown out. What service level is achieved in this situation? ( Round your answer to 2 ?decimal places. )
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a - 2 . ?What stocking level is appropriate to achieve this service level?
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