please help solve. very confused on how to go about this problem. thanks Remember Center City Cake Shoppe? They now have a bigbusiness serving Philadelphia and its suburbs. They did notchange the business model.The shop still spends $15 in making each cake, and has aregular selling price of $25.For every customer facing a stockout, the Cake Shoppe hasestimated that there is a goodwill loss of $5 (over and abovethe lost margin on that sale).Unsold cakes at the end of the day are sold below cost, at $10,and are always sold off before the store closes for the night.Their daily demand distribution is now:Demand Probability500.10600.15700.25800.25900.151000.10 1. The optimal service level for this business is[ Select ]2. Given this optimal service level, the optimal quantity to hold[ Select ]3. Given this optimal quantity, the expected sales is[ Select ]v while the expected demand is[ Select ]4. The fill rate is [ Select ]approximately.5. Center City Cake Shoppe is going to earn the highest profitper day with the above service level, and that profit will be $[ Select ]

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

1. The optimal service level for this business is [ Select ] 2. Given this optimal service level, the optimal quantity to hold is [Select] 3. Given this optimal quantity, the expected sales is [ Select ] v while the expected demand is [ Select ]

1. The optimal service level for this business is [ Select ] 2. Given this optimal service level, the optimal quantity to hold is [Select] 3. Given this optimal quantity, the expected sales is [ Select ] v while the expected demand is [ Select ]

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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