Questions from General Business Management


Q: Upon hearing that Ross White (see Problems 6-27 and

Upon hearing that Ross White (see Problems 6-27 and 6-28) is considering producing the brackets inhouse, the vendor has notified Ross that the purchase price would drop from $15 per bracket to $14.50...

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Q: After analyzing the costs of various options for obtaining brackets, Ross

After analyzing the costs of various options for obtaining brackets, Ross White (see Problems 6-27 through 6-29) recognizes that although he knows that the lead time is 2 days and the demand per day a...

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Q: Douglas Boats is a supplier of boating equipment for the states of

Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year. These engines are shipped to Douglas in a shipping...

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Q: Northern Distributors is a wholesale organization that supplies retail stores with lawn

Northern Distributors is a wholesale organization that supplies retail stores with lawn care and household products. One building is used to store Never fail lawn mowers. The building is 25 feet wide...

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Q: Why is the probability of the intersection of two events subtracted in

Why is the probability of the intersection of two events subtracted in the sum of the probability of two events?

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Q: Lisa Surowsky was asked to help in determining the best ordering policy

Lisa Surowsky was asked to help in determining the best ordering policy for a new product. Currently, the demand for the new product has been projected to be about 1,000 units annually. To get a handl...

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Q: North Manufacturing has a demand for 1,000 pumps each year

North Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It costs North Manufacturing $40 to place an order, and the carrying cost is 25% of the unit cost. If pumps are o...

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Q: Linda Lechner has just been severely chastised for her inventory policy.

Linda Lechner has just been severely chastised for her inventory policy. (See Problem 6-39.) Sue Surrowski, her boss, believes that the service level should be either 95% or 98%. Compute the safety st...

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Q: Ralph Janaro simply does not have time to analyze all of the

Ralph Janaro simply does not have time to analyze all of the items in his company’s inventory. As a young manager, he has more important things to do. The following is a table of six...

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Q: Thaarugo, Inc., produces a GPS device that is becoming popular

Thaarugo, Inc., produces a GPS device that is becoming popular in parts of Scandinavia. When Thaarugo produces one of these, a printed circuit board (PCB) is used, and it is populated with several ele...

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