Consider a two-stage serial process where the second stage is a rather minor operation adding little...
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Consider a two-stage serial process where the second stage is a rather minor operation adding little extra value to the product. To be more specific, suppose we have an item with these characteristics (borrowing the notation of "W" for warehouse, or primary stage and "R" for retailer, or finishing stage). • D 1,000 units/year • Vw = $5/unit ● • • • AR = $10 Find Qw, QR, and n. VR = $6/unit r = 0.24 $/$/year Aw = $20 Consider a two-stage serial process where the second stage is a rather minor operation adding little extra value to the product. To be more specific, suppose we have an item with these characteristics (borrowing the notation of "W" for warehouse, or primary stage and "R" for retailer, or finishing stage). • D 1,000 units/year • Vw = $5/unit ● • • • AR = $10 Find Qw, QR, and n. VR = $6/unit r = 0.24 $/$/year Aw = $20
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