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 of

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 5 per day. The manager estimates it costs $20 to prepare each cake. Fresh cakes sell for $23. Day-old cakes sell for $20 each. Use Table C.
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?
Note: Round your answer to 2 decimal places.
Service level
a-2. What stocking level is appropriate to achieve this service level?
Stocking level
5
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 5 per day. The manager estimates it costs $20 to prepare each cake. Fresh cakes sell for $23. Day-old cakes sell for $20 each. Use Table C.
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?
Note: Round your answer to 2 decimal places.
Service level
a-2. What stocking level is appropriate to achieve this service level?
Stocking level
 Demand for devil's food whipped-cream layer cake at a local pastry

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