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Annual demand for number 2 pencils at the campus store is normally distributed with mean 1,000 and standard deviation 250. The store purchases the pencils for 6 cents each and sells them for 20 cents each. There is a two-month lead time from the initiation to the receipt of an order. The store accountant estimates that the cost in employee time for performing the necessary paperwork to initiate and receive an order is $20, and recommends a 22% annual interest rate for determining holding cost. The cost of a stockout is the cost of lost profit plus an additional 20 cents per pencil, which represents the cost of loss of goodwill. a. Find the optimal values of Q and R. b. Substitute a Type 1 service level criterion of 95% for the stock-out cost. Find the values of Q and R. c. Substitute a Type 2 service level criterion of 98% for the stock-out cost. Assume that Q is given by the EOQ. Find the values of Q and R.
In your readings you were shown sources where decision tools can be found. Please refer to the "What is a Decision?" lecture and select "Click to Explore." In the list provided, yo
Discuss methods to diagnose employee stress and the specific OD (organizational development practitioner) interventions aimed at alleviating it in the workplace.
Pick a product that you believe would be beneficial for line extension. Justify your choice and discuss the strategy you would adopt for the new product
ABC Co manufactures a subcomponent at the rate of 400 per day when required. Its annual demand for this item is 50000 unites. Assume 250 working days per year. Holding cost is $10
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What are the benefits of list segmentation to direct marketers?
HR has moved from an administrative function to a transformational function. This change is based on automating HR functions through an HRIS system. Explain how HR evolved througho
Vogel Approximation Methods ( VAM): like the least methods the Vogel Approximation Methods( VAM) also consider the shipping costs. but in a relative sense when making allocations.
1 What the spark that started the current uprisings in the Middle East? Explain. 2 Apply your knowledge of the importance of Rule of Law into the current uprisings in the Middle
Your final project entails systematic extraction of decision-aiding insights out of a dataset provided to you in the Doc Sharing area. This project will provide you with hands-on e
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