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A particular type of rubber is used in the production of tennis balls and the company must decide on three different suppliers. Supplier A will sell the rubbers for $1.50 per rubber and will not accept any orders fewer than 7,000. Supplier B will sell the rubbers for $1.40 each but will not consider an order for greater than 8,500 rubbers, and Supplier C will sell the rubbers for $1.35 each but will not accept an order for greater than 9,000 rubbers. Assume an order setup cost of $150 and an annual requirement of 60,000 rubbers. Assume a 20 percent annual interest rate for holding cost calculations. a. Which suppliers should be selected and what is the size of the standing order? b. What is the optimal value of the holding and setup costs for rubbers when the optimal source is used? c. If the replenishment lead time for rubbers is three months, determine the reorder point based on the on-hand level of inventory of rubbers.
Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..
Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..
Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..
An analysis of the holding costs, including the appropriate annual holding cost rate.
Briefly explain Evolution and contributor of Operations management.
A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..
Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.
Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.
Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.
Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.
Ccompare the effectiveness of different leadership styles in different organizations
Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.
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