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Company A uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Company A uses 800 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $50 per order. The cost schedule of 2 suppliers are as follows: VENDOR 1 VENDOR 2 QUANTITY PRICE/LB QUANTITY PRICE/LB 1-499 $17.00 1-399 $17.10 500-999 16.75 400-799 19.85 1000 + 16.50 800-1,199 16.60 1200 + 16.25. a) What is the economic order quantity for each supplier? b) What quantity should be ordered, and which supplier should be used? c) What is the total cost for the most economic order size? d) What factor(s) should be considered besides total cost?
You are currently an intern working for the largest law firm in Alabama. Your mentor and senior attorney introduces you to a new client, Dick Jefferson, the owner of House Doctor,
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States the numerical flexibility workforce? Numerical flexibility allows a firm to adjust quickly to changing levels of demand through increasing or decreasing the number of
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Harley Davidson sells motorcycle X and Y. Motorcycle X sells for $10,000, has variable cost (labour and material) of $2,000, and requires 10 hours of use of machinery to produce. M
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