On average, the Donut Depot sells between 230 and 260 fresh donuts a day and demand...
On average, the Donut Depot sells between 230 and 260 fresh donuts a day and demand is uniformly distributed. The cost to make a donut is $.25 and the fresh donuts sell for $1.00 each. Any donuts that are not sold on the first day, are sold for $.15 the next day.
a) What is the calculated service level that Donut Depot should operate at each day?
b) How many donuts should the Donut Depot make each day in order to maximize profits?
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On average, the Donut Depot sells between 230 and 260
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