The Winfield Distributing Company Has Maintained an 80% Service Level

question 158

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?

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Definitions:

Mary Ann Warren

A philosopher known for her work in ethics, particularly her arguments on the moral and legal status of abortion.

Plan B Drugs

The term commonly refers to emergency contraception pills that are used to prevent pregnancy after unprotected sex or contraceptive failure.

Moral Wrong

An action or behavior that is considered unethical or immoral according to societal or personal standards.

Moral Status

The standing or importance of an entity within a moral framework, dictating how it should be treated ethically.