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Annual demand for number 2 pencils at the campus store is normally distributed with mean 1,000 and standard deviation 250. The store purchases the pencils for 6 cents each and sells them for 20 cents each. There is a two-month lead time from the initiation to the receipt of an order. The store accountant estimates that the cost in employee time for performing the necessary paperwork to initiate and receive an order is $20, and recommends a 22% annual interest rate for determining holding cost. The cost of a stockout is the cost of lost profit plus an additional 20 cents per pencil, which represents the cost of loss of goodwill. a. Find the optimal values of Q and R. b. Substitute a Type 1 service level criterion of 95% for the stock-out cost. Find the values of Q and R. c. Substitute a Type 2 service level criterion of 98% for the stock-out cost. Assume that Q is given by the EOQ. Find the values of Q and R.
SHAYO & Sons is a canning company in Arusha that currently operates two small canning State Mining Corporation (SMC) is establishing a production plan for the current week at its M
As the Marketing Manager for Proctor and Gambles Pet Nutrition and Care division you have been asked to consider launching a new dog food product in Mexico. What factors would you
How does the threat of a strike (or actual strike) affect the negotiating process and its tendency to bring about conditions necessary for agreement by union and management?
State the term Shamrock Organisation? Shamrock Organisation: According to Charles Handy the 'Shamrock Organisation' used to apply a model to the workforce flexibility. Th
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What is Diversification? Ans: Diversification is guiding activities into different lines of business.
4.31 Coffee Palace's manager, Joe Felan, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Joe has gathered the fol
Identify five key economic variables that could represent major opportunities or threats to a bank in your town or city. Identify which that you believe to be most important, and d
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The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several "designer" flavours. Marketing manager Georgiana Mercer is predicti
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