What is the maximum inventory level?
A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost is $150.
Answer: 242
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Which of the following is a major disadvantage of using the Internet as a marketing channel?
A) It is less effective for complex products. B) It lacks convenience and practicality. C) It cannot be used to reach a wide audience. D) It is considered expensive. E) It causes the company to lose direct contact with customers.
A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes
This manager is most likely using: A) a Pareto chart. B) a scatter diagram. C) a quality loss function. D) a cause-and-effect diagram. E) a flowchart.
The activities of production activity control can be classified as:
I. planning. II. implementation. III. control. IV. process control. A) I, II and IV B) I, III and IV C) II, III and IV D) I, II and III E) I, II, III and IV
Business Week reports that firms using mission statements have a ________ percent higher return on certain financial measures than those without such statements.