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Operations management: Bakery demand, standard deviation

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 1 tray.

If the owner wants a service level of at least 95% how many trays should he prepare (round to the nearest whole tray)? Assume doughnuts have no salvage value after the day is complete.

A) 7
B) 5
C) 4
D) 6
E) Unable to determine with the above information.

Solution Preview

Summarize given data given:

Distribution type: Normal
Mean: 5
Standard ...

Solution Summary

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 1 tray.

$2.19