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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.
Discuss and describe the risk evaluation process in a simplified approach.
Which of the following statements regarding service companies and activity-based costing (ABC) is true?
Fully describe relationship between planning and organizing. Explain how the controlling function does or does not relate significantly to the planning function.
A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales is relatively constant throughout the month. The owner of this grocery store purchases milk from a su
End-User Computing and Systems- Please respond to the following: •Discuss the advantages and disadvantages of end-user computing and determine if this is an application that should
integrated systems
What is the difference in strategy in developing an initial layout for a new facility as comparedn to the strategy in improving the layout of an existing facility?
Alternative Process Sequences - Services Just as in the selection of processes for product production, typically there will be alternative ways of delivering a service. Consid
1. What benefits can be gained from case studies? What dangers, if any, are there in using case studies? In what ways are they useful? Support your answers. 2. Provide some exam
Define importance of Training and Education. Importance of Training and Education: Training and education bring employees to a standard whether they can carry out industrial
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