Question: 2. Now let’ s assume that commune supplies a generic automotive part to the U. S. automotive companies. commune’s demand for a product is 60 units per month. commune’ s incurs an ordering cost of $40 per order and $35 per unit with a 20% discount for orders of 100 units or more. commune faces a 20% annual holding cost. What will be the percentage change in

Show transcribed image textHey champ,Welcome to this platform. Here you will get the answer with better quality in minimum time. This answers has been given by qualified expert. In the event that you face any uncertainty than you might post the comment for this answer.Your ans…View the full answerTranscribed image text: 2. Now let’ s assume that commune supplies a generic automotive part to the U. S. automotive companies. commune’s demand for a product is 60 units per month. commune’ s incurs an ordering cost of $40 per order and $35 per unit with a 20% discount for orders of 100 units or more. commune faces a 20% annual holding cost. What will be the percentage change in commune annual total cost using the quantity discount policy? Let’ s assume that commune checks the inventory level continuously. Also, let’ s assume that the commune’ s design specifications for the generic part requires a lower specification limit of 9. 5 mm and an upper specification limit for 10.5 mm. A sample of the products is randomly taken. An average length is 10.2 mm with a standard deviation of 0.3 mm. Do you think the current process is capable? What’s the defect rate for the product? You need to demonstrate sufficient explanation for your solution.

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