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Service Management: Operations, Strategy, Information Technology , 8th edition Excise15.6 SpanishInteriorsimportsceramicfloortilesfromMexicowithvariouspatternsinanticipationofcontractorneeds.Thesetilesusuallyareorderedayearbefore delivery,andtheproductionrunforeachtilepatternrequiresaseparatesetup.Therefore,theordersmustbelargetodefraythesetupcost.Becauseordersaremadefarinadvanceofcustomerneeds,thecompanymustguesswhatthecontractorswilllikeandorderpatternsinanticipationofthesedemands.Occasionally,tilepatternsfalloutoffavor,andSpanishInteriorsisstuckwithslowmovingstock.Themark-upis30percentofthetilecost,andtheinventoryusuallyturnsoveraboutthreetimesperyear.Therearetwoslowmovingtilepatternsinstockthatmanagementestimateswilltake2yearseachtoclear.Thesunburstpatterncurrentlyretailsfor$0.70persquareandthesaguarocactuspatternfor$1.05persquare. Calculatethelowestdiscountpriceforeachpatternthatwillclearthestockquickly.
Service Management: Operations, Strategy, Information Technology , 8th edition
- Excise15.6
- SpanishInteriorsimportsceramicfloortilesfromMexicowithvariouspatternsinanticipationofcontractorneeds.Thesetilesusuallyareorderedayearbefore delivery,andtheproductionrunforeachtilepatternrequiresaseparatesetup.Therefore,theordersmustbelargetodefraythesetupcost.Becauseordersaremadefarinadvanceofcustomerneeds,thecompanymustguesswhatthecontractorswilllikeandorderpatternsinanticipationofthesedemands.Occasionally,tilepatternsfalloutoffavor,andSpanishInteriorsisstuckwithslowmovingstock.Themark-upis30percentofthetilecost,andtheinventoryusuallyturnsoveraboutthreetimesperyear.Therearetwoslowmovingtilepatternsinstockthatmanagementestimateswilltake2yearseachtoclear.Thesunburstpatterncurrentlyretailsfor$0.70persquareandthesaguarocactuspatternfor$1.05persquare.
- Calculatethelowestdiscountpriceforeachpatternthatwillclearthestockquickly.
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Project management the managerial process
Authors: Eric W Larson, Clifford F. Gray
5th edition
73403342, 978-0073403342
