A Bakery Wants to Determine How Many Trays of Doughnuts

question 225

Multiple Choice

A bakery wants to determine how many trays of doughnuts it should prepare each day. Demand is normal with a mean of 5 trays and standard deviation of 1 tray. If the owner wants a service level of at least 95%, how many trays should he prepare (rounded to the nearest whole tray) ? Assume doughnuts have no salvage value after the day is complete.

• A) 5
• B) 4
• C) 6
• D) 7
• E) unable to determine with the above information

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Definitions:

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