Question: Demand for devil's food whipped-cream layer cake at a local party ship can be approximated using a passion distribution with a mean of 3.8 per
Demand for devil's food whipped-cream layer cake at a local party ship can be approximated using a passion distribution with a mean of 3.8 per day. The manager estimates it costs 14 to prepare each cake. Fresh cakes sell for $17. Day-old cake sells for $14 each. Use Table C A. Assume one-half of the day-old cakes are sold, and the rest thrown out. What service level is achieved in this situation? B. What stocking level is appropriate to achieve this service level?
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