Makes massive batch of macaroni-what is target service level

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Reference no: EM131366885

The restaurant you are working at makes one massive batch of macaroni and cheese each day. If you run out before the end of the day, the last few customers are less than satisfied, but if you make too much, it can be sold to the local hog farmer for feed. Every serving costs $0.23 to make and can be sold for $2.25 to customers. You have to pay $0.02 per serving to transport the extra servings to the hog farmer, but the hog farmer will pay you $0.09 per serving. The average daily demand is 121 servings with a standard deviation of 17 servings.

What is the target service level?

How many servings of macaroni and cheese should your restaurant make each day to meet this service level?

Reference no: EM131366885

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