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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 the issues management of Starbucks needs to address? Analyze and evaluate the issues identified. Recommend a set of actions management should take to address the issues th
Transferring some part of an organisation's activities to a subsidiary in another country is an example of offshoring.
Office Supreme, Inc., a local retailer of office supplies, faces demand for one of its inventory items at a constant rate of 240,000 units per year. It costs Office Supreme $38 to
Develop a forecast for years 2 through 12 using exponential smoothing with %u03B1 = .4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and th
Compare Google with Facebook. In terms of the five forces of competition, do you feel these companies view one another as competitions? Why or why not?
The Jackson Company has invested in a machine that cost $70000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is b
Suggest some possible strategic initiatives that Sigma could pursue to continue its growth
Demand for Caruso's Frozen Pizza (CFP) is normally distributed. The demand for CFP averages 400 per day with a standard deviation of 200. Weekly demand (5 days) averages 2,000 unit
1. Show graphically, and explain, the relationship between the different levels of management, types of problems, and types of decisions. What do we mean by the term "bounded ratio
What are some examples that would explain strategic groups?
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