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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?
DO NOT WORK A company is considering producing two new electronic games designed for the popular Gameboy toy. Based on market data, management believes there is a 60 percent chance
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Electronics assembly operates two 8 hours shifts for 275 days per year. Use this information in the table to determine the capacity requirements. Cell Phone Demand forecast (phones
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What do you think are the pros and cons of using a web-based appraisal systems?
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