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Perform an Internet search to identify two companies that have actively adopted six sigma quality
practices. How did the two companies approach six sigma implementation? What were the results? Based on
this sample of two, what are the key steps to successfully implementing six sigma?
- (Topic 11) A retailer’s demand for stock keeping unit (SKU) 756-RDU, white towels, is 28,540 per year. The
cost of raw material is $100 per unit. The cost of placing an order is $850, and the holding cost per unit per
year is 25% of per unit cost.
(a) What is the economic order quantity?
(b) What will be the total logistics cost in this case?
(c) How many orders will the retailer place per year?
Sample Solution
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