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A manager just received a new price list from a supplier. It will now cost $ 1.00 a box for order quantities of 801 or more boxes, $ 1.10 a box for 200 to 800 boxes, and $ 1.20 a box for smaller quantities. Ordering cost is $ 80 per order and carrying costs are $ 10 per box a year. The firm uses 3,600 boxes a year. The manager has suggested a round number order size of 800 boxes. The manager's rationale is that with a U shaped cost curve that is fairly flat at its minimum, the difference in total annual cost between 800 and 801 units would be small anyway. How would you reply to the manager's suggestion? What order size would you recommend?
List the major assumptions of the EOQ model. How would you respond to the criticism that EOQ models tend to provide misleading results because values of D, S and H are at best educated guesses?
Use Parnell text. How is the strategic management of an organization impacted by each of the following? Be specific. Include what managers must do to ensure positive impact.
Must linear programming be employed under conditions of certainty? This solution discusses the usefulness of LP even under the degree of uncertainty in 241 words.
The forecast requirements for an electric hand drill for the next 6 weeks are 15,40,10,20,50,and 30 units. The marketing department has booked orders totaling 20, 25, 10 and 20 units for delivery in the first.
within a construction company there are estimators who review construction drawings and specifications manuals. upon
finnish furniture manufactures tables in facilities located in three cities-reno denver and pittsburgh. the tables are
Explain Physicians generate wealth by practicing medicine, not by developing cash management procedures or reviewing aging history databases.
Our bottling plant uses approximately 1000 plastic bottlesper day (normally distributed), while daily usage has a standard deviation of 70. Order lead time is 2 days (constant).Suppose I plan to instead set up a periodic review inventory system, and ..
Provide 2 insights on conflict in organizations. Is conflict in organizations good or bad? Can conflict be avoided? Should all potential issues that can lead to increased conflict be addressed immediately? Expand your answers to show your understandi..
American Capitalism. Is a large discrepancy between executive pay and that of the average worker unfair to the worker?
Revisit the 21st century manager as an individual. Who is s/he? What does s/he do? How does s/he accomplish their job within the organization? What challenges are unique to the manager in contemporary business?
What is the relationship between inventory and the nine competitive priorities discussed in Chapter 1, "Using Operations to Compete"? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher..
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