The Winfield Distributing Company has maintained an 80% service level policy for inventory of string
Question: 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 Winfeld'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?
Price: $2.99
See Solution: The solution file consists of 1 page
Deliverables: Word Document
Deliverables: Word Document
