Weekly demand for electric motors at a Japanese motormanufacturer is normally distributed with a mean of 1,000 and astandard deviation of 1,000. Motors are currently assembled inChina and delivered at a cost of 20,000 yen per motor. (That is, each motor costs the Japanese manufacturer 20,000 yen each). The Chinese supplier takes 8 weeks to supply an order. A local Japanese manufacturer has offered to deliver motors with a lead time of one week at a cost of 20,400 yen per motor. The motor manufacturer is targeting a CSL of 99 percent and monitors its inventory continuously. The manufacturer incurs a holding cost of 25 percent. Should the manufacturer accept the local supplier's offer?

Case in point 2.4 attaway airlines, part two back at attaway airlines, the morning meeting ended with no agreement between dan esposito and molly kinnon. in fact, a new issue arose. molly now says that the new accounting system is entitled to the highest priority because the federal government soon will require the reporting of certain types of company-paid health insurance premiums. because the current system will not handle this report, she insists that the entire accounting system is a nondiscretionary project. as you might expect, dan is upset. can part of a project be nondiscretionary? what issues need to be discussed? the committee meets again tomorrow, and the members will look to you, as the it director, for guidance.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should