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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.
Demand during lead-time for HP printers at a Sam's club store is normally distributed, with a mean of 500 and a standard deviation of 150. The store manager continuously monitors i
Answer the following questions on the Topic of Forms of Business Ownership 1. Describe the three forms of ownership. Describe two advantages and two disadvantages of each. 2.
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Operations Management refers to those activities which are more or less directly concerned with the creation and delivery of goods and services. The course is intended to give you
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Lucille Jenkins, the CEO for the Durham International Manufacturing Company (DIMCO), believes that the company can significantly increase its operating profit by implementing suppl
An operation has a 10% scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labour productivity that could be achieved by eliminating the scr
the importance of the measurtement of market risk for financial institution
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