OPERATIONS MANAGEMENT (LL W/ CONNECT)
OPERATIONS MANAGEMENT (LL W/ CONNECT)
14th Edition
ISBN: 9781266539787
Author: Stevenson
Publisher: MCG
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Chapter 7, Problem 1CTE
Summary Introduction

To determine: The possible reasons for high employee turnover.

Introduction: The amount of dependency on human effort by an organization in terms of achieving its goals is given by the work design. It is directly linked to the productivity of an organization where good work design helps in achieving high productivity.

Summary: Company HH, a fast food restaurant serving its customers with health and hygienic foods. The firm is facing difficulties in generating profits and losing sales. Though their customers likely welcome the tasty, hygienic and appealing foods, the business steadily decline due to slow service and high employee turnover.

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The annual demand for water bottles at Mega Stores is 500 units, with an ordering cost of Rs. 200 per order. If the annual inventory holding cost is estimated to be 20%. of unit cost, how frequently should he replenish his stocks? Further, suppose the supplier offers him a discount on bulk ordering as given below. Can the manager reduce his costs by taking advantage of either of these discounts? Recommend the best ordering policy for the store. Order size Unit cost (Rs.) 1 – 49 pcs. 20.00 50 – 149 pcs. 19.50 150 – 299 pcs. 19.00 300 pcs. or more 18.00
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