Tire distribution of demand for jelly doughnuts on Saturdays at a doughnut shop is shown in the

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Tire distribution of demand for jelly doughnuts on Saturdays at a doughnut shop is shown in the following table. Determine the optimal number of doughnuts, in dozens, to make each Saturday morning if labour, materials, and overhead are estimated to cost $3.20 per dozen, doughnuts are sold for $4.80 per dozen, and leftover doughnuts at the end of each day are sold tire next day at half price. What is the resulting service level?
Demand (dozens) Relative Frequency
19……………………………………..01
20……………………………………..05
21……………………………………..12
22……………………………………..18
23……………………………………..13
24……………………………………..14
25……………………………………..10
26……………………………………..11
27……………………………………..10
28……………………………………..04
29……………………………………..02
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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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