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Henry Crouch's law office has traditionally ordered ink refills 65 units at a time. The firm estimates that carrying cost is 35% of the $9 unit cost and that annual demand is about 245 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optional?
a) For what value of ordering would its action be optional?
Its action would be optimal given an ordering cost of $---- per order (round your response to two decimal)
b) If the true ordering cost turns out to be much greater than your anser to part (a) what is the impact on the firm's ordering policy?
A tool used to determine the amount of time workers are spent on a task is called a
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Brady Jones is a manager at a local store that sells computers. He needs to decide how many computers to order based on the quantity discount schedule below. Annual demand is 3,000 computers, annual inventory carrying cost as a percent of unit cost i..
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Would the image of change chosen affect the diagnostic model used? Explain why and how, or why not with examples based on the readings thus far in the course.
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