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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.
value driven approach to production managemeent
Factors for plant Location choice - Availability of Services There are six main services which need to be considered: Gas Electricity Water Drainag
A good thesis statement on the subject- Working Overtime: How it affects the Body in a Negative Way
Twenty-five samples of size thirty (30) were collected and a total of 48 nonconforming items were found yielding p-bar = 0.064. The three sigma upper control limit (UCL) for a p co
How much should a company pay to keep a specially-skilled worker? Why? How would you determine the amount to pay to keep such a worker? Explain (again, use textbook concepts) Wh
Suppose a new hospital is to be built to provide emergenct medical healthcare service to 5 town w coordinates (5,6), (1,3), 13,7), (11,2), (18,1) on a map. The exisiting transporta
A location analysis for Temponi Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Temponi will need to train asse
A bottling facility with an effective capacity of 40,000 crates per day operates with an efficiency of 85%. How many crates will it need to plan for bottling on a day that requires
How can you use Systems Thinking to simplify your daily life? Or is System Thinking just a "corporate" way of defining and justifying common sense?
Duty is the primary view of this ethical position. It will be important to understand the categorical Imperative and that reason or rational thought must drive this theory. As you
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