OPERATIONS MANAGEMENT (LL) W/CONNECT
OPERATIONS MANAGEMENT (LL) W/CONNECT
14th Edition
ISBN: 9781265502942
Author: Stevenson
Publisher: MCG CUSTOM
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Chapter 9, Problem 12P
Summary Introduction

To determine: The typical characteristics of a pharmacy filling a prescription (service).

Introduction: Service quality helps to assess the degree of satisfaction that the customer received from the delivered service. It is the kind of evaluating the grade of how well the service delivered obeys the expectation of the customers. It also helps to identify the problems in the service and improve the client satisfaction.

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IM.82 A distributor of industrial equipment purchases specialized compressors for use in air conditioners. The regular price is $50, however, the manufacturer of this compressor offers quantity discounts per the following discount schedule: Option Plan Quantity Discount A 1 - 299 0% B 300 - 1,199 0.50% C 1,200+ 1.50% The distributor pays $56 each time it places an order with the manufacturer. Holding costs are negligible (none) but they do earn 10% annual interest on all cash balances (meaning there will be a financial opportunity cost when they put cash into inventory). Annual demand is expected to be 10,750 units. When there is no quantity discount (Option Plan A, the first row of the schedule listed above), what is the adjusted order quantity? (Display your answer to the nearest whole number.) 491 Based on your answer to the previous question, and based on the annual demand as stated above, what will be the annual ordering costs? (Display your answer to the…
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