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Homework_6_F_08 - c The consultant in(b makes the firm the...

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1 BUAD 311T Homework 6 . 1. Management Consultant A firm with fairly uniform demand for its product currently places an order once a month for 100 units. We know the following information about the firm and its product: Demand : 1200 units/year Fixed Set-up Cost : $10/set-up Holding Cost : Unknown a. What would inventory-holding cost have to be in order for the current policy to match the EOQ policy? b. Suppose that a management consultant accurately specifies that a holding cost of $9.60/unit-year. What optimal order-quantity does this imply?
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Unformatted text preview: c. The consultant in (b) makes the firm the following proposition: “If you don’t use my correctly specified value of h (holding cost) and continue the policy you are currently using, you owe me nothing. However, if you use my h value (and its corresponding Q*), you must pay me $100.” What will you do, and why? 2. JCA Chapter 17 Problem 24 (page 582) 3. JCA Chapter 15 Problem 25 (page 582) 4. JCA Chapter 15 Problem 28 (page 583)...
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