Essay
The Winfield Distributing Company has maintained an 80% service level policy for inventory of string trimmers.Mean demand during lead time is 170 trimmers,and the standard deviation during lead time is 60 trimmers.The annual cost of carrying one trimmer in inventory is $6.The area sales people have recently told Winfield's management that they could expect a $400 improvement in profit (based on current figures of cost per trimmer)if the service level were increased to 99%.Is it worthwhile for Winfield to make this change?
Correct Answer:
Verified
This is solved with a cost comparison: t...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q132: The EOQ model is best suited for
Q153: Which of the following is an element
Q154: Consider the all-units quantity discount schedule below.
Q156: In ABC analysis,"A" items are the most
Q159: Pointe au Chien Containers,Inc. ,manufactures in batches,and
Q160: Your company has compiled the following data
Q161: Average daily demand for a product is
Q163: If daily demand is constant at 10
Q206: Which of the following would NOT generally
Q210: Inventory that separates various parts of the