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Question: The Cover-up Drapery Company carries four types of fabric with the following characteristics:
Assume that the items are to be ordered together from the same supplier at an ordering cost of $20 per order and an annual carrying cost of 20 percent. Also assume 300 working days in a year.
a. If a P system is used, what is the optimal ordering interval in days?
b. How much of each type of carpet would be ordered when a combined order is placed?
c. What is the effect on the ordering interval of changing the carrying cost to 25, 30, and 35 percent?
d. Why can't these carpets be ordered by using a Q system?
e. Classify the four items above as A, B, or C inventory items.
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Governance mechanisms are considered to be effective if they meet the needs of all stakeholders, including shareholders. Governance mechanisms are also an important way to ensure that strategic decisions are made effectively. As a potential employ..
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