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A computer-supply mail order house has a memory chip in inventory that it sells to customers around the country. A Japanese manufacturer supplies the item using airfreight. It has the following characteristics: Average annual demand = 3,200 Replenishment lead time = 1.5 weeks Carrying cost = 15% per year Purchase price, delivered = $55 per unit Procurement ordering cost = $35 per order a. Design a reorder point method of control for this item. b. What are the annual ordering and annual carrying costs if your design is used? c. Suppose that the lead time stretches to three weeks, so that the ROP>Q*. What adjustments would you suggest making in the control policy?
What are the three trends that require managers to adopt a global perspective to exploit the potential of a new technology?
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A quality characteristic has a manufacturing specification (in cm) of 0.200 ± 0.05. Historical data indicate that if the quality characteristic takes on values larger than 0.25 cm
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Why do you think it's difficult to understand some of the basic cost terms in this chapter? Why aren't many technical people interested in cost-related subjects? What could be done
Can I have a process strategy matrix , which has 5 key performance objectives, people processes, technology and information in one of the accor chain hotel?
Read the Location Selection through Integrated Systems Management article. Define Integrated Systems Management in your own words and discuss the application of the 3 stages of fac
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All of the following factor have influenced the increased reliance upon project management in recent years EXCEPT: A. Rapid growth and change in the information technology and t
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