Question: Maya's Cookie Shoppe (spelling it like Shoppe makes it classier) makes fresh cookies each morning. Leftover cookies at the end of each day are discarded.
Maya's Cookie Shoppe (spelling it like "Shoppe" makes it classier) makes fresh cookies each morning. Leftover cookies at the end of each day are discarded. Maya sells two kinds of cookies: (1) plain and (2) frosted with rainbow sprinkles. Daily demand for plain cookies is Normally distributed with mean 50 and standard deviation 20, and demand for frosted with rainbow sprinkled cookies is Normally distributed with mean 150, standard deviation 45. Maya has decided to try to maintain a 97% cycle service level. If Maya produces and stores each type of cookie separately, how much safety stock is she carrying at this 97% cycle service level?
Group of answer choices
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93
207
Suppose Maya decides to make only plain cookies in the morning and add frosting and sprinkles at the time of customer request. Also, suppose that demands for the two different types of cookies are independent. What is the level of safety stock needed to achieve this 97% cycle service level?
Group of answer choices
207
108
123
93
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