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Demand for devil s food whipped - cream layer cake at a local pastry shop can be approximated using a Poisson distribution with a mean
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 ?per day. The manager estimates it costs $ ?to prepare each cake. Fresh cakes sell for $ ?Day old cakes sell for $ ?each. Use Table C
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a ?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 ?decimal places.
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a ?What stocking level is appropriate to achieve this service level?
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