Center City Cake Shoppe knows that for their signature (and expensive) birthday cake, the daily demand has the following distribution: Demand Probability 0.10 0.15 0.25 0.25 9 0.15 10 0.10 Center City Cake Shoppe prepares their cake in advance of customers coming in. In order to maintain a service level of 90%, they should have an inventory-on-hand equal to cakes. 0 8 6. O 10

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
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Pls help with below homework. Select the correct option and explain it in 7-8 sentences.

Center City Cake Shoppe knows that for their signature (and
expensive) birthday cake, the daily demand has the following
distribution:
Demand Probability
0.10
0.15
0.25
0.25
0.15
10
0.10
Center City Cake Shoppe prepares their cake in advance of
customers coming in. In order to maintain a service level of
90%, they should have an inventory-on-hand equal to
cakes.
O7
O 8
6.
O 10
9,
Transcribed Image Text:Center City Cake Shoppe knows that for their signature (and expensive) birthday cake, the daily demand has the following distribution: Demand Probability 0.10 0.15 0.25 0.25 0.15 10 0.10 Center City Cake Shoppe prepares their cake in advance of customers coming in. In order to maintain a service level of 90%, they should have an inventory-on-hand equal to cakes. O7 O 8 6. O 10 9,
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