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A food processor uses approximately 27,000 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding cost is 18 cents per jar, and reordering cost is $60 per order. The company operates an average of 20 days a month.
The manager would prefer ordering 10 times each month but would have to justify any change in order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manger to justify ordering every other day (i.e., 10 times a month)?
This is from Operations Management 12th edition by William J. Stevenson, and after doing all the work by myself I ended up with $24.30 which is the same answer that is located on this site when I looked it up but in the book it says that right answer is $54.20. I was just curious as to how to get to $54.20.
Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are $2,000 per month and EB rents its factory for $4,000 per month. How many packs of diapers should EB sell every month to break even?
Consumer preferences for Camay bathing soap were obtained on an 11-point Likert scale. The same consumers were then shown a commercial about Camay.
What are the risks and disadvantages of such alliances? What strategic alliances does your case study company employ?
How will decisions on external competitiveness help MPBS align compensation policies with mission and strategy?
(Industrial Baking Process) Strohrmann, a large scale bakery in Pennsylvania, is laying out a new production process for their packaged bread, which they sell to several grocery chains. It takes 12 minutes to bake the bread. How large an oven is requ..
Identify and analyze a best practice human capital acquisition, development, and retention in the United Kingdom.
Illustrate what recommendations can you offer Dick Enrico to improve his chances of staying successful for the rest of his career.
McMaster-Carr sells maintenance, repair, and operations equipment from five warehouses in the Untied States. W.W. Grainger sells products from more than 350 retail locations
A business organization intends to develop a new e-commerce Web site to enable its customers to make online purchases of computers in a quicker and more efficient manner
groups may be both a boon for example they statistically outperform individuals and a bane for example they take too
a fast-food restaurant averages 150 customers per hour. the average processing time per customer is 90 seconds.a.
Discuss the difference between a business-level cooperative strategy and a corporate-level cooperative strategy. Under what circumstances would you choose to develop a cooperative strategy? When is it not a good idea? Explain the approach you would a..
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