What is the service level and target stocking level

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Don Washing is trying to determine how many gallons of lemonade to make each day. Don needs to consider a single-period system because whatever lemonade is left over at the end of the day must be thrown out due to health concerns. Every gallon he mixes costs him $2.50 but will generate $10 in revenue if sold. Don knows from past experience that daily demand follows a normal distribution. To further complicate things, Don also knows that the mean and standard deviation for demand differ by day of the week (Monday-Friday, m = 422 s = 67; Saturday, m = 719 s = 113; and Sunday, m = 528 s = 85).

What is the service level and target stocking level for Monday-Friday?

What is the service level and target stocking level for Saturday?

What is the service level and target stocking level for Sunday?

Reference no: EM131780729

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