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Charlize runs a cake shop where she makes fresh cupcakes every morning and sells them during the day. Two of her best selling cupcakes are
Charlize runs a cake shop where she makes fresh cupcakes every morning and sells them during the day. Two of her best selling cupcakes are chocolate cupcakes and vanilla cupcakes. Both types of cupcakes have same production cost and selling price, and Denise gives away all leftover cupcakes at the end of day to a nearby food bank. The demands for both types of cupcakes have the same average, but the demand for chocolate cupcakes has higher variability. For which type of cupcakes optimal service level would be higher? Group of answer choices Chocolate cupcakes, since they have larger uncertainty Both should have the same optimal service level Vanilla cupcakes, since they have smaller risk Chocolate cupcakes, since they have larger risk
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