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The purchasing manager for the Pacific Steel Company must determine a policy for ordering coal to operate 12 converters. Each converter requires exactly 5 tons of coal per day to operate, and the firm operates 360 days per year. The purchasing manager has determined that the ordering cost is $80 per order, and the cost of holding coal is 20% of the average dollar value of inventory held. The purchasing manager has negotiated a contract to obtain the coal for $12 per ton for the coming year.
a. Determine the optimal quantity of coal to receive in each order.
b. Determine the total inventory-related costs associated with the optimal ordering policy (do not include the cost of the coal).
c. If five days' lead time is required to receive an order of coal, how much coal should be on hand when an order is placed?
Develop an aggregate production plan for a four-month period: February through May. For February and March, you should produce to exactly meet the demand forecast. For April and May, you should use overtime and inventory with a stable workforce..
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Compute Rose's total annual cost (material + ordering + carrying inventory).
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J.Q. is aggressive also is going to recommend that his father cancel the contract with one of the warehouse in the same city. J.Q. feels that when word of this get around, the other warehouses them use will "sharp up." Which of the seven should J...
use a work breakdown structure or similar tool to explain the major activities to be completed as part of the project.
The Sanchez Company has decided to invest in a new capital budgeting project that will require a net investment of $450,000. This project is expected to generate annual operating cash flows
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