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A job shop receives an order for high precision formed parts. The cost of producing each part is approximately $20,000. The customer requires that either 4 or 5 good parts be supplied. Each good part sold will yield $30,000. However, if fewer than 4 good parts are produced, none will be purchased. The probability of an individual part being acceptable to the customer is .80. 1/ Determine the optimum batch production quantity given that the job shop has agreed to supply the formed parts. 2/ Is the situation a profitable one for the job shop? I 3/ If not, how must the selling price be changed for the expected profit to be positive?
A nursing home contracts with an HMO for skilled nursing care at $2.00 PMPM. If costs are expected to average $120 per day, what is the maximum utilization of days per 1,000 member
Review the "Noodles and Company - Service Process Design" Could Noodles restaurant's service operation be successful by combining the characteristics of the three contrasting servi
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Explain how the EOQ technique helps explain the following: All things being equal, the production inventory quantity will be larger than the economic order quantity.
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Tune Football Helmets Company is considering changing its current inventory control system for football helmets. The information regarding the helmets is given below. Demand = 2
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Consider an international firm you are familiar with, and consider what the firm needs to be concerned about when entering a foreign marketplace. Specifically, in terms of the chap
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