Question
Demand for doughnut holes on Saturdays at Dons Doughnut Shoppe is shown in the following table. Demand (dozens) Relative Frequency Demand (dozens) Relative Frequency 19
Demand for doughnut holes on Saturdays at Dons Doughnut Shoppe is shown in the following table.
Demand (dozens) | Relative Frequency | Demand (dozens) | Relative Frequency |
19 | .02 | 25 | .10 |
20 | .11 | 26 | .13 |
21 | .13 | 27 | .09 |
22 | .02 | 28 | .06 |
23 | .10 | 29 | .06 |
24 | .18 | ||
a-1. Determine the optimal number of doughnut holes, in dozens, to stock if labor, materials, and overhead are estimated to be $5.20 per dozen, doughnut holes are sold for $6.80 per dozen, and leftover doughnut holes at the end of each day are sold the next day at half price. (Round your answer to the nearest whole number.) Optimal number of doughnuts:
a-2. What is the resulting service level? (Round your answer to 2 decimal places.)
Service level :
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