![]() ![]() Olin Foundation, David and Lucile Packard Foundation, Smith Richardson Foundation, and the Spencer Foundation. The work was supported in part by National Institutes of Health (NIH) grant RO1 EY 014314-01, National Science Foundation grants SBR 9709359 and DMS 9705158 and by grants from the following foundations: Achelis Foundation, Bodman Foundation, Lynde and Harry Bradley Foundation, Donner Foundation, Milton and Rose D. Peterson as principal coinvestigators for this evaluation and the School Choice Scholarships Foundation (SCSF) for cooperating fully with this evaluation. The authors thank the editor, an associate editor, and three reviewers for very helpful comments David Myers and Paul E. Loeb Professor of Statistics and Chair, Department of Statistics, Harvard University, Cambridge, MA 02138. Hill is Assistant Professor, School of International and Public Affairs, Columbia University, New York, NY 10027. Frangakis is Assistant Professor, Department of Biostatistics, Johns Hopkins University, Baltimore, MD 21205. Your report should provide an appropriate mix of qualitative and quantitative assessment required to support any statements or recommendations.John Barnard John Barnard is Senior Research Statistician, deCODE Genetics, Waltham, MA-02451. ![]() Prepare a report no longer than 2,500 words addressing Mr Plummer’s needs. Variations in monthly demand for Base Stock Item A can be up to 25% above or below average. Their accountant estimates Donner’s cost of holding inventory at 27%. Plummer has previously done studies to determine that their cost of raising and processing a purchase order is approximately $50/order. Determine what this would be for Base Stock Item A. Plumber wants to know by how much his operating costs and inventory values will increase by holding stocks. Data on its usage is given in Exhibit 4 of the case study. Data has been provided below on “Base Stock Item” A. ![]() In addition, they have been considering establishing stocks of some frequently used items but he is unsure about how to establish an inventory control policy for such items. He has indicated that the delivery performance has been a potential issue given their strategy is based on build-to-order. He has asked you to come into his organisation as a consultant, advise him on the key operational issues he should be addressing and provide him with some guidance for the future. Mr Plummer is concerned about recent events in his company and the likelihood that these may foreshadow future trends. With reference to the situation described in the case study. Read the Harvard Business School Case Study “Donner Company”. Harvard Business School Case Study Donner Company ![]()
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