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Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, uses exactly 2000 of item X. The fixed ordering cost is $10 per order, and the variable cost is 6 dollars per unit ordered. Storage cost, which includes insurance and cost of capital, amounts to $0.55 per unit of average inventory per year. What should be the optimal order size, i.e., economic order quantity?
If Item X is ordered whenever the inventory hits zero, and the order quantity is 277 each time an order is placed, what is the annual fixed ordering cost that Complete Computer incurs in one year?
How much would the TC increase if the order quantity must be 1,000 units? How is JIT (just-in-time) ordering methodology different from EOQ methodology?
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Currently, new machines must be purchased at a cost of $500,000 a piece, the price charged for each control unit is $110, and the variable cost of production is $50 per unit.
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In the Business-to-Business field, pioneer firms establish wide and strong relationships with their customers through communication
Push processes in supply chain are carried out in anticipation of customer demand whereas all pull processes are carried out in response to customer requests.
In the adoption of operations and/or Internet-based technology, should the organisation change to fit the technology or should the technology change
Consider a supply chain for an organization you are familiar with. Answer the following questions about that organization for the time frame of last two year
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