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A computer-supply mail order house has a memory chip in inventory that it sells to customers around the country. A Japanese manufacturer supplies the item using airfreight. It has the following characteristics: Average annual demand = 3,200 Replenishment lead time = 1.5 weeks Carrying cost = 15% per year Purchase price, delivered = $55 per unit Procurement ordering cost = $35 per order a. Design a reorder point method of control for this item. b. What are the annual ordering and annual carrying costs if your design is used? c. Suppose that the lead time stretches to three weeks, so that the ROP>Q*. What adjustments would you suggest making in the control policy?
How can be a mapping process done? Mapping processes can be awkward, long winded and a complicated process as like getting everyone to agree what the procedure looks like along
The local convenience store makes personal pan pizzas. Currently, their process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and
Simultaneity of Production and Consumption of Service Products There is no opportunity to place the service in inventory. This is not always completely, for instance, petrol i
Illustrate the strategic positioning tools? Strategic positioning tools according to Reck and Long: • Passive (as clerical and transaction based) purchasing functions only o
Which behaviours, thinking approaches, emotional stances, decisions, and business management actions can be found in the two readings that pertain to adaptability, resilience, and/
1. What are the arguments for and against the application of the methods of scientific management? Answer: The main argument against scientific management is that in de-skilling
The first step in the Model of Scientific Inquiry is to identify the question or problem needing further study. The following seven situations are typical everyday problems in busi
A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i
What is the aim of focus factories in manufacturing? Focus factories: The aim of this is to decrease the cost of ‘part finished stock’ for example, work-into-progress. P
Baker Mfg. inc. wish to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. 1. B
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