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Consider a firm that purchases polystyrene as a raw material for use in a styrofoam plant. The plant runs 250 days a year. Polystyrene costs $1,500 per ton and the plant uses 125,000 tons per year. Delivery charges consist of a "per ton" charge, which is included in the material costs, plus a fixed charge of $225 for each delivery, which covers paperwork, receiving expenses, and so forth. The firm uses a 15 percent carrying cost rate for inventory.
A. Use the EOQ model to compute the batch size that minimizes the sum of the holding plus ordering costs.
B. How many days of supply does the above batch size represent?
C. Suppose the firm decides for convenience to have polystyrene delivered every other day. What will the batch size be and how much will this cause the total (holding plus ordering) cost to increase?
The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves is the Western, which has an annual demand of 4,000 units.
Explain why would Information Systems desire to complete something which we are not going to use as the specs really did change.
The average arrival rate is 12 students per hour also the average service rate is 20 students per hour. Illustrate what is the utilization factor.
ABC Freightways maintained its principal place of business in Arkansas. However, they provided trucking services in all states west of the Mississippi River, which included the State of Kansas.
who are the stakeholders affected by the stores' decisions? Do the stores, as businesses, have an obligation to the broader community to not hurt tourism? Is Neda placing her own personal ethics ahead of business ethics? Is there a difference? Why..
External vs. Internal Policies. Distinguish policies on external competitiveness from policies on internal alignment. Why is external competitiveness so important? What factors shape an organization's external competitiveness?
After a number of complaints about its directory assistance, a telephone company examined samples of calls to determine the frequency of wrong numbers given to callers
Administrative costs are allocated between branded production and private-label production according to their respective percentages of total revenue generated
Identify key gaps in planning for the exit. Provide recommendations on the exit strategy. Is the sale the right one? What steps ought to be taken to maximize the sales-price?
What is the total cost if Dave relies on part-time employees to meet additional demand? What is the total cost if Dave hires one more full-time employees to meet additional demand?
A property title search firm is contemplating using online software to increase its search productivity. Currently an average of 35 minutes is needed to do a title search
Describe ways you expect to use format design and visuals in your future college papers and in your professional life.
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