Soup4U is a restaurant that sells soup. Soup4U makes production decisions using the news vendor model. Each bowl of soup costs the store a total of $2 to make. Soup4U sells each bowl of soup to its customers at $4.50 a bowl. Any left over bowls of soup will be donated to a soup kitchen for free. If Soup4U were to use the news vendor model to make an optímal production decision what would their service level be? (Round your answer to two decimal places.) 23% 2 44% O 56% 80% None of the other answers are within 1% of correct

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Soup4U is a restaurant that sells soup. Soup4U makes production decisions using the news
vendor model. Each bowl of soup costs the store a total of $2 to make. Soup4U sells each
bowl of soup to its customers at $4.50 a bowl. Any left over bowls of soup will be donated to
a soup kitchen for free. If Soup4U were to use the news vendor model to make an optímal
production decision what would their service level be? (Round your answer to two decimal
places.)
23%
44%
O 56%
80%
None of the other answers are within 1% of correct
0. 0
Transcribed Image Text:Soup4U is a restaurant that sells soup. Soup4U makes production decisions using the news vendor model. Each bowl of soup costs the store a total of $2 to make. Soup4U sells each bowl of soup to its customers at $4.50 a bowl. Any left over bowls of soup will be donated to a soup kitchen for free. If Soup4U were to use the news vendor model to make an optímal production decision what would their service level be? (Round your answer to two decimal places.) 23% 44% O 56% 80% None of the other answers are within 1% of correct 0. 0
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