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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.
Why do successful firms conduct marketing research for their products/services?
A wealthy farmer owns fifty acres of land. He is going to plant each acre with sugarcane or corn. Each acre planted with sugarcane yields Rs 16,000 profit; each with corn yields Rs
An assembly line with 17 tasks is to be balanced. The longest task is 2.1 minutes, and the total time for all tasks is 23 minutes. The line will operate for 480 minutes per day. a.
4 Which of the following best describes the materials the company uses to make its footwear? a Synthetic fibers, waterproof polyesters, microfibers, rubber, and metal eyelets
Case Study: Social Media Policies, Concerted Activity and HR Management In the last few years, companies have begun initiating and implementing Social Media policies for their e
President of Washington Enterprise and controlled 16 plants throughout the South. Extensive evaluation of personal records revealed the name Sid Smith, assistant plant manager in A
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Question 1: Explain the features of Six Sigma. • shifts the paradigm quality as the cause of good business performance • The philosophy is to make fewer mistakes. • Is a
Explain about the term flexible firm. Flexible firm: By John Atkinson the conception of the “flexible firm” was proposed, he recognised about organisations will need grea
Messages are transmitted from low speed terminals and arrive at a message concentrator at a Poisson rate of 600/hr. They are held in a buffer until a hi-speed trunk line is free to
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