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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.
1. Using the terms from this chapter, how would you characterize the teams at ICU Medical Inc.? What are some advantages and disadvantages of giving teams a lot of autonomy to make
discus more about work measurement techniques
#quBloomsday Outfitters produces T-shirts for road races. They need to acquire some new stamping machines to produce 30,000 good T-shirts per month. Their plant operates 200 hours
As the administrative manager in a law office, you have been asked to develop a system for evaluating the productivity of the 15 lawyers in the office. What difficulties are you go
WHAT IS FAILURES OF SERVICE
Decision Tree Analysis Applied to Capacity Expansion Linear programming and computer simulation models focus on the short term question of how to use existing capacity. But the
Aman work at the Bank, to help customers, including retired people, to plan for the future. Often the value of pensions does not keep up with inflation. Hence retired people requ
There is sometimes a perceived conflict between earning profit and being responsible. What should CanGo do about adding violent games to their product mix? What impact might this h
Given the series of demand data below Period: 1 2 3 4 5 6 7 8 9 10 Demand: 43 31 52 44 23 48 40 39 30 40 Calculated forecasts for periods 7 through 11 using moving average
how can we cover and understand the gaps in our company? and what is the slosh-an
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