The winfield distributing company has maintained an 80, Ask an Expert

Management Studies

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?

PLEASE SHOW ALL WORK TO COME TO YOUR CONCLUSION:)

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93132291

Have any Question?Write your Review or question?

Related Questions in Operation Management

Asignment1how would you describe enrons corporate culture

Assignment 1. How would you describe Enron's corporate culture? What behaviors did its employees engage in that gave you this opinion? 2. What was "Mark-to-Market" accounting? What is the potential ethical problem with t ...

System development failures have been discussed written

System development failures have been discussed, written about, and held up as model of what not to do. At a point toward the end of the 1990’s, it was estimated that 75% of all the major system projects failed, were sig ...

Read the home care scenario quality improvement through

Read the "Home Care Scenario: Quality Improvement Through Risk Management," located in the Allied Health Community. Be sure to review the Instructions and Legend information. In a total of 250-500 words, respond to the q ...

Consider a project consisting of four activities a b c and

Consider a project consisting of four activities A, B, C, and D. The following are constraints within which the project has to be conducted • A and B, the first activities of the project, can be started simultaneously. • ...

Question research the hotel segment at which you most

Question : Research the hotel segment at which you most frequently stay, outline a marketing plan for the hotel segment you researched. Analyze modern ownership and management patterns, and create a list of best practice ...

Read through the case study entitled mampl manufacturing in

Read through the Case Study entitled "M&L Manufacturing" in Chapter 3 of your textbook. Examine the historical trend this company has experienced for the two products discussed. Prepare weekly forecasts for the next four ...

Consider the following information on an inventory

Consider the following information on an inventory management system: Item Cost: $10 Order Cost: $250 Annual Holding Cost: 33% of item cost Annual Demand: 25,750 Average Demand: 515 per week Std. Dev. of Demand: 125 per ...

One way to maintain exclusivity for a brand is to raise its

One way to maintain exclusivity for a brand is to raise its price. That's what luxury fashion and leather goods maker Louis Vuitton did. The company did not want the brand to become overexposed and too common, so it rais ...

Tom hires hank to do some roofing on his house for 3000

Tom hires Hank to do some roofing on his house for $3000. Hank owes Tom's wife $500 for the last payment on a car he bought from her a few months ago. They talk to her and she agrees that Hank will give Tom a $500 credit ...

1 a review that never mentions anything positive about the

1. A review that never mentions anything positive about the paper A. properly focuses on the errors and weaknesses in the writing without wasting time on complimenting the writer. B. is useful because it keeps the writer ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert