Demand for doughnut holes on Saturdays at Dons Doughnut Shoppe is shown in the following table. Determine

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Demand for doughnut holes on Saturdays at Don’s Doughnut Shoppe is shown in the following table.

Determine the optimal number of doughnut holes, in dozens, to stock if labor, materials, and overhead are estimated to be $3.20 per dozen, doughnut holes are sold for $4.80 per dozen, and leftover doughnut holes at the end of each day are sold the next day at half price. What is the resulting service level?

Demand

(dozens)

Relative Frequency Demand

(dozens)

Relative Frequency 19 .01 25 .10 20 .05 26 .11 21 .12 27 .10 22 .18 28 .04 23 .13 29 .02 24 .14

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Operations Management

ISBN: 9781260575712

14th Edition

Authors: William J Stevenson

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