Ken Ells,owner and Operator of Kennels,Inc

question 34

Essay

Ken Ells,owner and operator of Kennels,Inc.,is concerned that the person in charge of ordering dog food is often incurring an order expediting expense because he is waiting too long (letting the inventory level drop too low)before ordering.​
Past data indicate that demand during lead time (when expediting does not occur)is normally distributed with a mean of 340 pounds and a standard deviation of 45 pounds.Ken wants the probability of running out of dog food to be 0.03.​
a.If the current order point is 400 pounds,what is the resulting service level?
b.If Ken wants a service level of 97% for dog food,what should the order point be?

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Definitions:

Full-authority

A term often associated with electronic control systems, where the electronic controller has complete control over a system's functions.

Electronically-managed

Controlled or regulated by electronic means, typically referring to devices or systems that use electronic components and circuitry for operation.

Allison CEC

Allison CEC likely refers to a controller or software used in Allison Transmission systems for commercial or heavy vehicles, designed to manage or enhance transmission functions.

Vehicle VIN

The Vehicle VIN, or Vehicle Identification Number, is a unique code used to identify individual motor vehicles, comprising a series of letters and numbers that encode specific data about the vehicle.