help me please Mathilda\'s Bakery & Cakes is a local chain l Marie, is the secon

Question

help me please

Mathilda's Bakery & Cakes is a local chain l Marie, is the second in command at Mathilda's Bakery & Cakes and s offering breads, roll s, and cakes in Germany. The owner, Mathilda, is working on her expansion plans. he is in charge of all operations related activities Mathilda's Bakery & Cakes follows a traditional production c oncept. They bake breads and rolls early in the morning to fill the daily demand at a make too few breads or rolls they run the risk of not satisfying all customers that come in and loose the margin. If they make too many breads or rolls they may have left over products which they have to throw away. Discarding left over products incurs an additional disposal fee. (So if too many products are made, not only the materials and labor is wasted, but also, an additional disposal fee has to be paid to throw away excess products.) Mathilda and Marie are evaluating two products Selling price (Euro per unit) Production cost (Euro per unit) Disposal cost (Euro per unit) King Rolls 0.2 0.02 0.01 Whole Wheat Bread 4.28 0.856 0.03 Calculate the optimal cycle service level for King Rolls and Whole Wheat Bread Optimal cycle service level for king rolls: Optimal cycle service level for whole wheat bread

Explanation / Answer

King Rolls Whole Wheat Bread Price, p 0.20 4.28 Cost, c 0.02 0.856 Salvage, s 0.01 0.03 Cost of overstocking, Co = c- s 0.0100 0.8260 Cost of understockingCu = P-c 0.1800 3.4240 Optimal CSL = Cu/(Co+Cu) 0.9474 0.8056

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.