You are the manager of Nutty Nutella, a specialty retail store that sells delicious hazelnut spread which it grinds and blends every evening for sells the next day. Recently, you have implemented the newsvendor model to optimize your inventory levels and meet customer demand effectively. Nutty Nutella produces jars at a cost of $5.00 and sells them for a price of $8.00 per jar. Left over jars at the end of the day are sold to a neighboring bakery which uses them to bake scones with. Because the bakery is owned by the managers friend, they sell them to the bakery for a price of $2.00 each. What is the ideal service level based on the above information? O 23% O 44% 50% O 62.5% O None of the other answers are within 1% of correct 37.5%
You are the manager of Nutty Nutella, a specialty retail store that sells delicious hazelnut spread which it grinds and blends every evening for sells the next day. Recently, you have implemented the newsvendor model to optimize your inventory levels and meet customer demand effectively. Nutty Nutella produces jars at a cost of $5.00 and sells them for a price of $8.00 per jar. Left over jars at the end of the day are sold to a neighboring bakery which uses them to bake scones with. Because the bakery is owned by the managers friend, they sell them to the bakery for a price of $2.00 each. What is the ideal service level based on the above information? O 23% O 44% 50% O 62.5% O None of the other answers are within 1% of correct 37.5%
Chapter10: Digital Marketing And Social Networking
Section10.2: Dollar Shave Club Faces Sharp Competition
Problem 1C
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Transcribed Image Text:You are the manager of Nutty Nutella, a specialty retail store that sells delicious hazelnut
spread which it grinds and blends every evening for sells the next day. Recently, you have
implemented the newsvendor model to optimize your inventory levels and meet customer
demand effectively. Nutty Nutella produces jars at a cost of $5.00 and sells them for a price of
$8.00 per jar. Left over jars at the end of the day are sold to a neighboring bakery which uses
them to bake scones with. Because the bakery is owned by the managers friend, they sell
them to the bakery for a price of $2.00 each. What is the ideal service level based on the
above information?
O 23%
O 44%
50%
O 62.5%
O None of the other answers are within 1% of correct
37.5%
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