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:

Tax Exemption

A part of tax law that allows certain incomes, transactions, or entities to be free from taxation under specified conditions.

Pre-revolutionary France

Refers to the historical period in France before the French Revolution of 1789, characterized by monarchy rule, social inequities, and fiscal crises leading up to significant societal upheaval.

Nobles

Members of the aristocracy or nobility, a social class in various countries distinguished by hereditary titles or privileges, often holding significant wealth, land, and power.

Battle of Valmy

A significant battle during the French Revolutionary Wars, fought in 1792, which marked the first major victory of the French revolutionary army over the invading Prussian and Austrian forces.