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You are an executive of a business where the demand for your products has been stable and almost constant. You know that your supply chain manager, Tim Kluless, is purchasing the product at a constant price (with no quantity discounts) from a supplier. At the end of the fiscal year, Mr. Kluless submits a report with the following cost information:
Annual Ordering Costs = $650,000
Annual Inventory Holding Cost = $500,000
By looking at these two numbers, would you recommend that they increase or decrease their order quantity?
Bob of Bob’s Fish and Tackle, has a business that specialized in the sales of one type of special fishing hook. The annual volume of hooks was 4,000 hooks per keg, and they were sold to retail customers in an even flow. Explain the logic of the EOQ m..
Does risk-based compensation limit the freedom of primary care physicians in any way in terms of patient care? Why or why not? How does the capitation model of reimbursement work? Do physicians generally prefer one model over the other? Why or why no..
Harley purchases components from three suppliers. Components purchased from Supplier A are priced at $5 each and used at the rate of 20,000 units per month. Components purchased from Supplier B are priced at $4 each and are used at the rate of 2,500 ..
(a) Determine the optimal action based on the maximin criterion. (b) Compute the expected monetary value (EMV) for each decision. (c) Compute the expected value of perfect information (EVPI) and explain the meaning of it in this problem.
What is the inventory holding cost (in $) for a pair of shoes that the firm purchased for $51?
Tele-Reco is a new specialty store that sells TV’s, DVD players, video games and other television related products. A new manufactured DVD player costs Tele-Reco $600 per item. What are the estimated annual inventory holding and ordering costs associ..
What is the term for a long term relationship with a supplier based on mutual trust shared vision and shared risk. What is the marketing? Why is it important to the success of a firm?
discuss the relationship between these four features of capitalism. companies, profit motive, competition and private property.
Upward mobility is important to all organizations and particularly critical to employees.
What is the value to the company and the supplier in developing and implementing a Supplier Relationship Management (SMS) System? How can such a system provide greater efficiency? Describe the value to the organization.
This is the thing an organization does best—something that draws customers to the company, is difficult to imitate, and opens up potential markets? This strategy is used by organizations that target a very specific market or clientele. An organizatio..
Two very important types of technical documents include process explanations and instructions. How do process explanations compare to instructions? How do these two writing genres differ? What is the purpose for each?
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