Question # 4: Three Chums Fish Company buys fresh salmon daily from the fishermen that ply the deep waters of Puget Sound. Salmon are purchased for $2.50 per pound and sold to the public at $8.50 per pound. The salmon are kept fresh by displaying them on ice but at the end of the day, any unsold fish have a noticeable odor and are sold to a nearby chowder stand for $1 per pound. The past year's demand for salmon on Saturdays is shown in the table. Based on this information, what should their target service level and stocking point be? What is the significance of the target stocking level? Daily Demand (pounds) # Days at This Level 300 3 320 4 340 6 360 9 380 9 400 8 420 6 440 5 460 2 Solution: