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Determine the optimal number of doughnuts

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Question: Demand for jelly doughnuts on Saturdays at Don's Doughnut Shoppe is shown in the following table.

Demand Relative Demand Relative

(dozens) Frequency (dozens) Frequency

19 .01 25 .10

20 .05 26 .11

21 .12 27 .10

22 .18 28 .04

23 .13 29 .02

24 .14

a-1. Determine the optimal number of doughnuts, in dozens, to stock if labor, materials, and overhead are estimated to be $3.85 per dozen, doughnuts are sold for $5.20 per dozen, and leftover doughnuts at the end of each day are sold the next day at half price. (Round your answer to the nearest whole number.)

a-2. What is the resulting service level? (Round your answer to 2 decimal places.)

Reference no: EM132748030

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