A bakery wants to determine how many trays of doughnuts it should prepare each day.Demand is normal with a mean of 5 trays and standard deviation of 2 trays. If the ownerwants a service level of at least 95%, how many trays should he prepare (rounded to thenearest whole tray)? Assume doughnuts have no salvage value after the day is complete.Select one:O a. 8O b. 9O c. 6O d. 3O e. 7

Given- Mean demand = 5 traysStandard Deviation = 2 traysService level = 95%

Answered: A bakery wants to determine how many…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Arthur crafts miniature chocolate dollhouses which he sells for $21 each. Arthur has calculated the breakeven level of revenues for his business at $779 of sales. The dollhouses have a variable cost of $7 to produce per unit. If Arthur sells 100 units, what are his total costs?
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Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normaldistribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week.The new manager desires a service level of 90 percent. Lead time is two days, and the dairy isopen seven days a week. (Hint: Work in terms of weeks.) b. If a fixed-interval model is used instead of an ROP model, what order size would be needed forthe 90 percent service level with an order interval of 10 days and a supply of 8 gallons on handat the order time? What is the probability of experiencing a stockout before this order arrives?
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Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 24 gallons per week and a standard deviation of 3.5 gallons per week. The new manager desires a service level of 90 percent. Lead time is two days, and the dairy is open seven days a week. (Hint: Work in terms of weeks.)Use Table B and Table B1. a-1. If an ROP model is used, what ROP would be consistent with the desired service level? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) ROP gallons a-2. How many days of supply are on hand at the ROP, assuming average demand? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Days b-1. If a fixed-interval model is used instead of an ROP model, what order size would be needed for the 90 percent service level with an order interval of 7 days and a supply of 8 gallons on hand at the order time? (Do not round intermediate…

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