The Winfield Distributing Company Has Maintained an 80% Service Level

question 122

Essay

The Winfield Distributing Company has maintained an 80% service level policy for inventory of string trimmers. Mean demand during the reorder period is 170 trimmers, and the standard deviation 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?

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Definitions:

Breastfeed

the act of feeding a baby milk directly from the mother's breast, which is recommended for its health benefits to both infant and mother.

Immunity

Immunity refers to the biological process whereby an organism is able to resist disease, particularly through the actions of the immune system detecting and eliminating pathogenic agents.

Childhood Diseases

Illnesses commonly diagnosed in children, ranging from mild conditions like chickenpox to more serious illnesses.