Clancy's Motors Has the Following Demand to Meet for Custom

question 15

Essay

Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $.75 per month and each setup costs $150. Calculate the order quantity by use of the part-period algorithm. Lead time is 2 months.
$$\begin{array} {| l | l | l | l | l | l | l | l | } \hline \text { Month } & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\\hline \text { Requirement } & 100 & 150 & 200 & 150 & 100 & 150 & 250 \\\hline\end{array}$$

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Definitions:

Authority

A right or power assigned to an individual or organization to make decisions and enforce rules.

Confirmation Bias

Confirmation bias describes the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.

Availability Heuristic

This is a mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Representativeness Bias

A cognitive bias where individuals judge the probability of an event by how much it resembles their existing stereotypes or expectations, rather than based on actual statistical evidence.