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You have just received 10 units of a special sub assembly from an electronics manufacturer at a price of $250 per unit. A new order has also just come in for your computer's product that uses these sub-assemblies, and you wish to purchase 40 more to be shipped in lots of 10 units each. (The sub-assemblies are bulky and you need only 10 a month to fill your new order.) A. Assuming a 70% learning curve by your supplier on a similar product last year, how much should you pay for each lot? Assume that the learning rate of 70% applies to each lot of 10 units, not each unit. B. Suppose you are the supplier and can product 20 units now, but cannot start production on the second 20 units for two months. What price would you try to negotiate for the last 20 units?
Why is strategic management critical to the success of an organization in meeting its goals and mission?
Discuss the four enablers of purchasing and supply chain excellence.
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A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i
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mis in decision making
A paper mill produces two grades of paper viz, x and y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper in
Explain production budget. A production budget may be made by production manager in consultation along with his assistants after obtaining the sales Budget. A production budg
Your company manufactures turbine blades for engines in production batches for each type. For one type of blade, the A39T, you have an annual demand of 10,000 units. It costs you $
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