What is the target service level

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Reference no: EM132244481

You are starting a Christmas tree business. You can purchase trees from local farmers at $14 per tree. You are able to sell the trees at $30 per tree. Any leftover trees can be sold to the local wood chip company at $7.2 per tree. Assume that the demand follows a uniform distribution ~U(47,445).

1) What is the target service level (TSL)?

2) How many trees should you stock through the holiday season?

Reference no: EM132244481

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