What is the target service level tsl how many trees should


You are starting a Christmas tree business. You can purchase trees from local farmers at $13 per tree. You are able to sell the trees at $33 per tree. Any leftover trees can be sold to the local wood chip company at $5.6 per tree. Assume that the demand follows a uniform distribution ~U(24,578).

What is the target service level (TSL)?

How many trees should you stock through the holiday season?

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