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A fast-food restaurant buys hamburger buns from a national bakery supplier. The daily usage of buns at the restaurant is normally distributed with an average of 160 and standard deviation of 10. It takes 4 days for the supplier to deliver. The purchasing agent at the restaurant has established a 99.7% service level. Calculate: a) The Safety Stock and Reorder Point for the restaurant. b) The fast-food restaurant now considers ordering hamburger buns from a local bakery. To estimate its costs, the restaurant assumes now those buns are used at the (constant) rate of 100 per day and are purchased at $0.025 per bun. And it costs $1 for each order placed and the annual inventory holding cost per unit is 25% of the unit purchase cost. How much should be ordered (rounded to the nearest integer) each time to minimize the restaurant's total annual costs? And what is the length of order cycles (i.e. time between orders) in days? Assume the restaurant operates 360 days per year
1. Grapple Industries has 1,000 full-time and part-time employees who manufacture parts for hand tools. Company policy states that part-time employees are not eligible for overtime
Given this information: Expected demand during lead time = 300 units Standard deviation of lead time demand = 30 units Determine each of the following, assuming that lead time dema
1) Identify a well-known company (this may include Dell, Nike, United Airlines, eBay, Southwest Airlines, or another firm) and describe its business-level (competitive) strategy. W
A state department of tourism and recreation collects data on the number of cars with out-of-state license plates in a state park. (The group's position is that more out-of-state p
The chapter notes that in 2010, in roughly two-thirds of U.S. firms, the CEO is also the chair of the board of directors. More broadly this can be viewed as an intermingling of man
Under what kinds of circumstances might an organization wish to use control limits of 2 standard deviations or even 1 standard deviation? What should it bear in mind when using the
A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 30 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100
Golden age retirement planners specializes in providing financial advice for people planning for a comfortable retirement. The company offers seminars on the important topic of ret
What is the difference between personal and business ethics?
Cultural diversity can provide a company competitive advantage regarding problem-solving. True False
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