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Office Supreme, Inc., a local retailer of office supplies, faces demand for one of its inventory items at a constant rate of 240,000 units per year. It costs Office Supreme $38 to process an order to replenish stock and $2.5 per unit per year to carry the item in stock. Stock is received 5 working days after an order is placed. Assume 250 working days a year. a. What is Office Supreme's optimal ordering quantity? b. What is the reorder point? c. What is the annual number of orders? d. What is the optimal interval (in working days) between orders? e. What are the annual carrying cost, ordering cost and total cost?
How might a company's business strategy affect the contribution (pay-for-performance) policies and techniques of its Total Compensation system?
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A Make or Buy Analysis Managers at Wagner Fabricating Company are reviewing the economic feasibility of manufacturing a part that it currently purchases from a supplier. Forecas
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