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:

Multi-Company Assessment

Multi-company assessment involves evaluating the practices, performance, and strategies of various companies, often used for benchmarking or competitive analysis.

Diagonal Feedback

Communication that cuts across work areas and organizational levels, typically to provide feedback or information not adhering strictly to the organizational hierarchy.

Constructive Feedback

Insightful, actionable, and supportive feedback intended to help individuals improve their performance.

Real Feeling

Genuine emotions and sentiments as experienced by an individual, without pretense or fabrication.