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A computer-supply mail order house has a memory chip in inventory that it sells to customers around the country. A Japanese manufacturer supplies the item using airfreight. It has the following characteristics: Average annual demand = 3,200 Replenishment lead time = 1.5 weeks Carrying cost = 15% per year Purchase price, delivered = $55 per unit Procurement ordering cost = $35 per order a. Design a reorder point method of control for this item. b. What are the annual ordering and annual carrying costs if your design is used? c. Suppose that the lead time stretches to three weeks, so that the ROP>Q*. What adjustments would you suggest making in the control policy?
Choosing which processes are core to a firm's competitive postition is a key strategic decision. For example, Nike, a popular sports shoe company, focuses on the customer relations
Question 1: Explain the features of Six Sigma. • shifts the paradigm quality as the cause of good business performance • The philosophy is to make fewer mistakes. • Is a
Mean value - Statistical Aspects of Variability The arithmetical mean value (µ, mu) of the measurements can be readily calculated, as follows. Let the class mid- point values
From the video, take a position whether an organization has the right to monitor employee's emails and online usage
North West Corner Rule: Step1: The first assignment is made in the cell occupying the upper left hand ( north west ) corner of the transportation table. The maxim
Unconscionability is an import UCC concept. What is it and how does it help the consumer? Illustrate your answer with examples
The following probabilites for grades in management science have been determined based on the past records: Grade Probability A .10
Introduction about law of supply
Evaluation of potential projects by weighted scoring matrix: A five year project has a projected net cash flow of $20,000, $25,000, $35,000, $15,000, and $25,000 in the next f
Consider a queuing system with 2 types of customers. Type 1 customers arrive according to a Poisson process with a mean rate of 5 per hour. Type 2 customers arrive according to a P
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