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Stacey manages an accountancy firm in NYC and her staff drink a lot of coffee; the office use 5 kilograms of coffee grounds each day. Her office manager buys coffee from an organic supplier in Brooklyn who charge $7.50 per kilogram of coffee and she estimates it costs the firm $5.00 every time they place an order. The supplier guarantees that any order placed will arrive exactly 5 days later. The office manager wants to know when and in what quantity she should order the coffee for the office. Stacey estimates annual holding costs of $0.50 per kilogram of coffee per year. Assume there are always 365 days in a year.
(a) How many kilograms of coffee should Stacey tell her office manager to order each time to minimize the average cost to the company per year?
(b) How frequently should an order be placed?
(c) What is the reorder point?
(d) What does the reorder point represent?
The time to perform the first instance of a task is 6 hours. How much time will it take to perform the 5th repetition if the learning rate is 80%?
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However, the challenges Blu Dot encounters have not diminished with its success. Blu Dot still struggles with keeping affordability at the lower end of the spectrum and craftsmanship at the high end. What are the different challenges for Blu Dot in s..
Standard Deviation Abstract
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The demand of the winter jacket varies over the week (7 days). The average demand per week is 50 items. Given that the retailer’s order lead time is two days, the average lead time demand is 16 items and the standard deviation during lead time is 3 i..
How can a decision maker identify strategic factors in the corporation's external environment? How will you do this in your case analysis? What is the relevance of the resource-based view of a firm to strategic management in a global environment?
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