OPERATIONS MANAGEMENT CNCT W/EBK
OPERATIONS MANAGEMENT CNCT W/EBK
14th Edition
ISBN: 9781264344017
Author: Stevenson
Publisher: MCG
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Chapter 7, Problem 8P
Summary Introduction

To determine: The standard time for the operation.

Introduction: The amount of the 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.

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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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OPERATIONS MANAGEMENT CNCT W/EBK

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