Demand for devils food whipped-cream layer cake at a local pastry shop can be approximated using a Poisson distribution with a mean of 5.4 per day. The manager estimates it costs $22 to prepare each cake. Fresh cakes sell for $25. Day-old cakes sell for $22 each. Use table C.

1. Assume one-half of the day-old cakes are sold, and the rest thrown out. What service level is achieved in this situation?

2. What stocking level is appropriate to achieve this service level?

Table C (concluded) ulx 5 16 17 18 19 20 30 3.2 3.4 3.6 3.8 0 1 1 2 3 4 5 6 1 8 9 10 11 12 13 14 1050 199 423 647815 1916 1966 98 996 99 1,000 1041 171 380 1603 1.78] 1.895 1955 1983 1994 98 1.00 1.033 .147 4340 1558 1.744 1871.942 977 1992 997 1999 1.000 1027 126.303 515 706 84.927 1969 1988 1996 999 1.000 1022 107 1269 474 666 1.816 1909 960 1984 1994 1998 999 1.000 2018 092 1238 1433 629 1785 889 1949 1979 1992 1997 1999 1.000 2015 .078 1210 395 1590 1753,868 1936 1972 1.99 996 1999 1.00 2012 .066 185 359551 720 1844 921 1964 1985 994 1998 199 1.000 010 .056 1.163 1326 1513 1.686 1818 905 1955 1900 1992 1997 99 1000 1.06 048 143 294 1.476 4651791 1887 194 1975 1990 1996 199 1.000 4.0 4.2 4.4 45 4.8 1.000 1997 1.000 5.0 5.2 5.4 56 5.8 2007 .040 125 2006 034 .109 2005 029 .095 2004 024.082 2003 021 .072 1265 441 1.238 406 213 373 191 1342 313 1.616762 1.867 1581732 1.845 1.56702 822 1512 ,670 197 478 .638 1.771 1932 918 903 996 1867 1968 960 1951 1941 1929 986 1982 1978 1972 965 1995 1993 1990 1988 1984 1998 1999 1999 1996 1999 1995 1998 1993 1997 1.000 1999 1.000 199 1.000 170 1.000 6.0 6.2 6.4 6.6 6.8 003 2017 .062 1002 015 .054 2002 2012 .046 1.001 2010 .040 1.001 2009 .034 151 134 119 105 1.093 1265 1259 1235 213 .192 46.606 1.74 414 1574 716 1.384 1542 .687 1355 511 1.658 4327.480 1628 .847 1826 .803 1780 1755 1916 1902 1886 1.869 1.850 957 1949 1939 927 915 1.980 1975 1969 1963 1955 1991 1969 1986 1982 1978 1996 1995 1994 1992 1990 99 1998 1997 1999 1999 1.000 1999 1.000 1999 1999 1.000 1998 1999 1.000 97 1996 7.0 7.2 74 1.6 .001 007.030 4001 2006 .025 2001 005 022 001 004 .019 100 .04 2016 1.082 173 072 156 1.063 140 1.055 125 .2048 112 1301 .450 599 1276 420 1569 .253 ,392 539 .231,365 510 210 1338 1481 729 703 676 .6 1620 1830 1.810 788 1.765 1.141 901 1887 371 .854 1835 1947 1957 1926 1915 1902 1973 67 51 54 1945 1987 1984 1960 1976 971 1994 1993 991 1999 1986 1998 1997 1996 1995 993 1999 1.000 1999 1.999 1,000 1999 199 1.00 1998 1999 1000 1997 1999 1.000 18 8.0 82 8.4 3.6 3.8 4000 2003 2014 2000 .003 2012 1,000 .002 010 000 002 009 4000 .002 2007 1042 .100 037069 1.032 079 070 1024 062 .191 .313 1.174 290 157 ,267 .142 1246 128 226 453 425 400 373 348 593 1566 1537 1509 1482 717 1692 1.666 1640 614 1816 796 174 752 1729 188 .873 1.857 849 1822 336 1926 5 1909 1966 1960 1952 1949 935 1993 1979 1975 1973 964 1992 1990 1987 1986 1981 1996 1995 194 1993 1990 1998 1998 1997 1997 1995 199 1,000 1999 1.000 1999 1.000 1999 1.00 1998 1.99 1.000 1,030 9.0 9.5 1000 001 006 1000 .001.004 1.021 055 .015 040 116 1207 089 165 324 269 1456 1392 1587 1.522 706 4645 803 1752 176 6 1926 1898 1959 1940 1978 1.967 1999 1992 1995 1991 996 1996 999 1998 1.000 1999