Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 3 . 8 ?per day. The manager estimates it costs $ 1 4 ?to prepare each cake. Fresh cakes sell for $ 1 7 . ?Day - old cakes sell for $ 1 4 ?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. )
?
?
a - 2 . ?What stocking level is appropriate to achieve this service level?
?
?
?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management Planning And Control Techniques

Authors: Rory Burke

3rd Edition

047198762X, 9780471987628

More Books

Students also viewed these General Management questions

Question

1. Effort is important.

Answered: 1 week ago