Hershey Company Uses Quantitative Models for Inventory Control

question 39

Essay

Hershey Company uses quantitative models for inventory control.For canned syrup, the annual demand is 8,000 cases.The supplier is 500 miles away, and it usually takes three days to get an order filled.The average order costs $16 to process and the carrying cost per case is $40 per year.The store is open 300 days a year.
Required:

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Definitions:

Performance Standards

The expected levels of performance or benchmarks that a job, employee, or organization is expected to achieve.

Measurable Standards

Benchmarks or criteria that can be quantified to evaluate performance or progress towards specific objectives.

Traits

Enduring and distinct personality characteristics that influence an individual's behavior, perception, and interaction with the environment.

Calibration

A process whereby managers meet to discuss the performance of individual employees to ensure that their employee evaluations are in line with one another.