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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.
What are companies that have low customer contact and are capital intensive; yet provide a service, called?
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manufacturing operation definition and objective
Alternative Control Chart Constructions In this treatment of the subject, description has been of charts with both warning and action limits, and these limits calculated with
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Dedication of resources within an organization is Answer an indication of stockholder involvement. An unification of global resources under the parent company. One aspect of minimi
Your company has a market share of 25%. The total market size is $100 million. Your contribution margin (the ratio of the contribution per unit over the price per unit) is 20%. You
1.1 Fast Fit Case Study Fast Fit Sporting Goods is a successful New England regional supplier of sporting goods to the high end consumer market. They sell an exclusive selection of
What prompted the change effort at the IRS, and what was targeted to change? Why was the proposed change controversial?
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