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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?
The owner of Firewood-2-Go is considering buying a hydraulic wood splitter which sells for $60000. He figures it will cost an additional $80 per cord to purchase and split wood wit
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Identifying and developing global leaders is a key concern for international companies. Compare and contrast the skills and context of the traditional / national manager with that
What specific challenges P&G and Colgate-Palmolive face, and why has globalization become so important to them?
Globex
Explain Lead Time. Lead Time : Lead Time is the time that takes the stock to reach from Re-order point to minimum stock level. This may be also defined as the time as elapses
I have seven homework question that I''m trying to complete. How much will it cost
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the followi
Even though independent gasoline stations have been having a difficult time, Susan Helms has been thinking about starting her own independent gasoline station. Susan's problem is t
Product Focused Production System In this type of production processing, the production departments are organized according to the type of product / service being produced, a
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