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Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,600 units. Annual demand is 5,600 heat sinks, the annual inventory holding cost rate is $2 per unit, and the cost to place an order is estimated to be $59.
Calculate average inventory level.
Calculate number of orders placed per year.
Calculate total annual inventory holding cost.
Calculate total annual ordering cost.
Calculate total annual cost.
What would three-sigma control limits for the process be? What alpha risk would they provide? What alpha risk would control limits of 4.14 and 4.86 provide?
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Munson Performance Auto, Inc modifies 500 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year’s performance as a benchmark for ..
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