A local pastry shop sells a whipped-cream layer cake. It costs $10 to prepare each cake and fresh cakes sell for $20. The demand for the cakes can be approximated by a Normal distribution with mean = 10 and standard deviation = 3. Any left-over cakes can be sold the next day for $8 each.
(A) What is the optimal number of cakes to make each day?
(B) If the bakery capacity is such that only 11 cakes can be made per day, then what is the service level if 11 cakes are made each day?(That is what is the probability that demand is less than or equal to 11?