Tim’s Bakery bakes muffins for 40 local supermarkets and sells them through the supermarkets on a consignment basis, which means he only gets paid for the muffins that sell. He destroys muffins that don’t sell. People in this city love his muffins He estimates a daily demand of 3,000 muffins with a standard deviation of 300 muffins. Suppose he produces 3,564 muffins. Using the Excel formula NORMDIST (level of production, mean, standard deviation, 1), calculate the expected service level or percentage time in stock.
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