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In the Previous Problem,the Manufacturer Performs Additional Market Research

question 57

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In the previous problem,the manufacturer performs additional market research.Based on this research,they determine that they can increase the price to $150 and are able to reduce the standard deviation of the forecast to σ = 30.At the same time,they have made an arrangement with an outlet store that will purchase unsold equipment for $60 each.How will these changes affect the cost of overstocking,cost of understocking,optimal cycle service level and optimal order size?

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Definitions:

Economic Strike

A strike action undertaken by workers to achieve better wages, hours, and working conditions, as opposed to strikes for political reasons.

NLRA Section 8(a)(3)

Part of the National Labor Relations Act that outlines unfair labor practices by employers, particularly around discrimination against employees for union involvement.

Immediate Reinstatement

The rapid return of an individual to their previous position or status, often following an unfair dismissal or suspension.

Union Organizing Drive

A concerted effort by workers and/or union representatives to gain union representation in a workplace.

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