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 (refer to photo).

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.)

Service level _______

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

Stocking level ______

Table C (concluded) (ulx 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3.0 3.2 3.4 3.6 3.8 .050 199.423 .041 171 380 .033.147 340 .027 126 303 .022.107269 .647 .815 .916 966 988 996 999 1.000 .603 .781 .895 .955.983 .994 998 1.000 .558 .744 871 942 977 .992 .997 .999 1.000 .515 .706 .844.927 .969 .988.996 .999 1.000 .474 668 816 909.960 .984 994 .998.999 1.000 4.0 4.2 4.4 4.6 4.8 .018 .092 .238 .015.078 210 .012.066 185 .010.056.163 .008 048 143 433 395 .359 .326 .294 .629 .785 .889 .590 .753 .868 .551 720 .844 .513 .686.818 .476 .651.791 .949 .936 .921 .905 .887 .979 .972 .964 .955 .944 .992 .989 .985 .980 .975 .997 .996 .994 .992 990 .999 .999 .998 .997 .996 1.000 1.000 999 1.000 .999 1.000 .999 1.000 5.0 5.2 5.4 5.6 5.8 .007.040 125 .006.034 109 .005.029.095 .004 .024 .082 .003.021 .072 .265 .441 .238 .406 .213 373 .191 .170 .313 .616 762 .867 .581 732 845 .546 702 822 .512.670 797 .478.638 .771 .932 .918 .903 .886 .867 .968 .960 .951 .986 .982 .978 .972 .965 .995 .993 .990 .988 .984 .998 .999 .997.999 .996 999 .995 .998 .993 .997 1.000 1.000 1.000 .999 1.000 .999 1.000 342 .941 .929 6.0 6.2 6.4 6.6 6.8 .003.017.062 .002.015.054 .002.012.046 .001 .010.040 .001.009.034 .151 .134 .119 .105 .093 .285 .259 .235 .213 .192 446.606.744 .414 574 .716 .384 542 .687 355 .511 .658 327 480.628 .847 .826 .803 .780 .755 .916 .902 .886 .869 .850 .957 .949 .939 .927 .915 .980 .975 .969 .963 .955 .991 .996 .989 .995 .986 .994 .982.992 .978 .990 .999 .998 .997 .997 .996 .999 .999 .999 .999 998 1.000 1.000 1.000 .999 1.000 .999 1.000 810 7.0 7.2 7.4 7.6 7.8 .001.007.030 .001.006.025 .001.005.022 .001.004 .019 .000.004 .016 .082 173 .072 .156 .063.140 .055 125 .048 .112 .301 .450.599 .276 .420 .569 .253.392.539 .231.365 510 .210.338 481 .729 .830 .703 .676 .788 .648 .765 .620 741 .901 .887 .871 .854 835 .947 .937 .926 .915 .902 .973 .967 .961 .954 .945 .987 .984 .980 .976 .971 .994 .993 .991 989 .986 .998 .997 .996 .995 993 .999 .999 .998 .998 .997 1.000 .999 1.000 .999 1.000 .999 1.000 .999 1.000 8.0 8.2 8.4 .000.003.14 .000.003.012 .000 .002.010 .000 .002.009 .000 .002 .007 .042 100 .191.313 .453 .037.089 .174 290 425 .032.079.157 .267 400 .030 .070 .142 .246 .373 .024 .062 .128 .226 348 .593 .566 .537 .509 482 .717 .692 .666 .640 .614 .816 .796 774 .752 .729 .888 .873 857 .849 .822 .936 .966 .926 960 .915 .952 .909 949 .889 .935 .983 .979 .975 .992 990 987 .996 .995 .994 .993 .990 .998 .998 .997 .997 .995 .999 1.000 .999 1.000 .999 1.000 .999 1.000 .998 .999 8.6 .973 .964 986 981 8.8 1.000 9.0 9.5 .000 .001 .006 .000 .001.004 .021 .015 .055 .040 .116 .207 .089165 .324 .269 456 .392 .587 .522 .706 .645 .803 .752 .876 .836 .926 .898 .959 .940 .978 1967 .989 .982 .995 .991 .998 .996 .999 .998 1.000 .999