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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?
Do you think global businesses would be willing to subscribe to a global code of conduct?
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Operations Management refers to those activities which are more or less directly concerned with the creation and delivery of goods and services. The course is intended to give you
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How is service separated from the person who provides the service? Services frequently cannot be separated through the person who gives the service: a. Every time the servic
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