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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?
Consider an international firm you are familiar with, and consider what the firm needs to be concerned about when entering a foreign marketplace. Specifically, in terms of the chap
A popular concept in healthcare administration these days is the service line. Let us put you in the CFO position for this question. For your own hospital, are you in favor of serv
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Types of Process Designs The basic type of production system and the finished goods inventory policy to be used must be decided at the earliest stages of process planning. The
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Class, on the final exam you may be asked the difference between an entrepreneur and a "small business manager" (Hatten, 2009, p. 29) so let's practice with it here. What is the di
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A young musician goes on tour to promote his newest songs. The concerts are a huge success, but due to technical problems, the musician's songs are not posted to iTunes until 6 wee
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