TAHC (total annual holding cost) = what?
What does TAHC include (warehousing , ... ,,, ...) correct answers Average inv. Level x Per unit cost
1)Insurance costs
2)Capital
3)warehousing
4)Shrinkage
Average inventory level in a basic fixed quantity model? correct answers Obviously: 1/2 I...
Is a failure more expensive "closer to you, or closer to the customer?
Is a quality problem more expensive when found closer or further away from its "source" correct
answers 1)Prevention
-costs for improving quality of product.
EX: Worker training, design for quality/manufacturing, maintenance, supplier certification
2)Appraisal
-costs for EVALUATING level of quality.
EX:quality audits, inspection of incoming materials, testing finished products
3)Internal failure
-Costs incurred when product fails BEFORE it reaches the customer
EX: Machine repair, scrap costs, rework
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