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The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.
a. Find the reorder point necessary to provide a 98 percent service probability.
b. Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will the new service probability be?
Investor G. Loeb owns a 5-year, $1000 bond with a 5% coupon. If the yield to maturity on similar bonds is currently 10%, what is Mr. Loeb's bond worth today? A security analyst
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1. The fraction of orders filled by a distribution center or warehouse within a specific time period is referred to as the A. inventory turnover B. inventory supply time C
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Time and Motion Study
Applying the EBQ model, what batch size would you recommend for this product? How long will each batch take to produce, and how many batches per year will be made? Should this mode
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