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Car Solutions (CCS), a manufacturer of car and two-wheeler engines, has purchased a1000 bearings per week from a local supplier who charges $1 per bearing. Recently during a Trade Exhibition, the CEO of CCS has identified another potential source willing to supply the bearings at $0.95 per bearing. Before making his decision, the CEO wants to evaluate the performance of the two suppliers.
The local supplier has an average lead time of 2 weeks and has agreed to deliver the bearings in batches of 2000. Based on past on-time performance, the CEO estimates that the lead time has a standard deviation of one week. The new sources, located in another city, has an average lead time of 6 weeks and a standard deviation of 4 weeks. The new source would also require a minimum batch size of 8000 bearings.
Which supplier should the CEO go with? CCS has a holding cost of 30%. It currently uses a continuous review policy for managing inventory and aims for a cycle service level of 95%. Weekly demand has a mean of 1000 and a standard deviation of 300.
If the local supplier decided to drop his price by 1 cent, would it change the CEO's decision
It costs the company $200,000 to bill all its customers. Assume that the company can earn interest at a rate of 20% per year on all revenues. Determine how often the newspaper should bill its customers.
Focused strategies keyed either to low-cost or differentiation are especially appropriate for situations where, the market is composed of distinctly different buyer groups who have different needs or use the product in different ways.
Why are feedbacks loops so important in monitoring supply also demand. Where the feedback loops should be placed also why in these locations.
Calculate the process capability ratio and the process capability index values, what conclusions is management likely to draw from the capability analysis
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Write several paragraphs describing the aspects of a servant leader. Why does it appeal to an approach to leadership? What are some concerns?
formulate a linear programming model that will enable the farmer to determine th number of acres where sugarcane and/or corn should be planted in order to maximize profit from his land. using ALL 50 acres, but not all workers or fertilizers.
Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,450 new students to take business courses. Illustrate what are the utilization and efficiency of this system.
Solve for x: log_10?x=3 5. You've earned your degree and have been hired by an established company. You were able to negotiate a beginning salary of $2500 per month with annual 6% raises each year.
Illustrate how you would coach a subordinate in your organization to write a business report OR memo.
Dell Computers is known for revolutionizing the personal computer market using mass customization. This company can turn out a huge volume of computers while still having a variety of options for customers to choose from.
Some have argued the Six Sigma programs are merely repackaged versions of older quality improvement programs that originally accompanied TQM initiatives in the 1980s
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