Max Richardsonx operates a gourmet bakery, renowned for its artisanal sourdough bread. He observed that the demand for his bread follows a normal distribution with a mean of 155 loaves and a standard deviation of 20 loaves. He incurs a cost of $9 per loaf, which he sells for $17. Unsold loaves at the end of the day are donated to a local food bank, for which he receives $2 per loaf. Based on this information, the ideal service level is _____%. (Do not round your intermediate calculations. Round your final answer to the nearest whole number. Only enter the number. Do not enter any units.
Max Richardsonx operates a gourmet bakery, renowned for its artisanal sourdough bread. He observed that the demand for his bread follows a normal distribution with a mean of 155 loaves and a standard deviation of 20 loaves. He incurs a cost of $9 per loaf, which he sells for $17. Unsold loaves at the end of the day are donated to a local food bank, for which he receives $2 per loaf. Based on this information, the ideal service level is _____%. (Do not round your intermediate calculations. Round your final answer to the nearest whole number. Only enter the number. Do not enter any units.
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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Transcribed Image Text:Max Richardsonx operates a gourmet bakery, renowned for its artisanal
sourdough bread. He observed that the demand for his bread follows a normal
distribution with a mean of 155 loaves and a standard deviation of 20 loaves.
He incurs a cost of $9 per loaf, which he sells for $17. Unsold loaves at the end
of the day are donated to a local food bank, for which he receives $2 per loaf.
Based on this information, the ideal service level is ____%. (Do not round your
intermediate calculations. Round your final answer to the nearest whole
number. Only enter the number. Do not enter any units.
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