IE 398 Recitation 7 - 16.04.2010 IE 398 Systems Thinking...

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16.04.2010 IE 398 Systems Thinking Spring 2010 Recitation 7 A customer has offered to buy from LOD, a special type of high-technology lubricant which is not among the lubricants that LOD normally produces. Therefore the present offer represents a one-time project and the customer has offered to pay €200 000 for the required amount. The lubricant requires mixing an oil A and a special agent B. The necessary amount of A is available in the stocks of LOD, but B must be obtained from an outside supplier and an order has already been placed when the project was offered to LOD. The mixing process is quite complicated and requires the use of two kinds of capital equipment C and D; C is already owned by LOD but D must be leased from outside. Mixing also requires that expert scientific help be obtained from a nearby University. LOD accountants calculate the following cost estimates for the project: cost item type accounting costs in € material A (in stock) 16 000 B (on order) 18 000 labour 70 000
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This note was uploaded on 05/23/2010 for the course IE 398 taught by Professor T during the Spring '10 term at Middle East Technical University.

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IE 398 Recitation 7 - 16.04.2010 IE 398 Systems Thinking...

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