Question: Problem 12-38 (Algo) Demand for devil's food whipped-cream layer cake at a local pastry shop can be approximated using a Poisson distribution with a mean

Problem 12-38 (Algo) Demand for devil's food
Problem 12-38 (Algo) Demand for devil's food
Problem 12-38 (Algo) 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 6 per day. The manager estimates it costs $25 to prepare each cake. Fresh cakes sell for $28. Day-old cakes sell for $25 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? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Service level 19.35 a-2. What stocking level is appropriate to achieve this service level? Answer is complete but not entirely correct. Stocking level 5 X Table C concluded) LX 1 4 6 10 11 12 13 14 15 16 17 18 19 20 30 32 5.0 5.8 3.0 999 80 90 95

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!