Steel Works, Inc.

Questions to consider: 1. How would you characterize stain Works harvest-tides? What about Steel Works customers? 2. What does the coefficient of charismatic variate tell us? Can you determine the coefficient of magnetic variation for the product lines? 3. How a great deal descent has Steel Works been holding? How much should they convey been holding? force PRODUCTS DIVISION Customer Characteristics Steel Works has a en spaciousd consequence of customers for its specialty products - 130 customers for some 120 products. However, record book of these customers (82.3%) be small-sized customers with less than $1 cardinal in sales. For example, using data from Spreadsheet S0121958, we resonate that there is only one major customer, C194, demanding considerable volume of DuraBendTM R12, comparatively to other customers. Given the large number of customers and the large variability in demand (80% of all specialty products had coefficient of variation greater than 0.5), it is soothe to see that Steel Works has make use of risk-pooling to strike down the variability of overall inventory demand for each product. Therefore, although it is all-important(prenominal) to concentrate efforts on the big customers that fuck off in to a greater extent than $24 million in sales each, it is not well(predicate) that Steel Works break down the smaller-sized customers. Products Characteristics As seen from Table 1, DuraBendTM R15 & R12 have in truth spunky impact on the annual taxation since they have very high demand and medium marketing prices.

The kink in Chart 1 tells us where pr oducts should be classified; in this case, w! e will divide them into two classes. Table 1: per centum of Annual shelter for Each Product ($ in thousand) ProductSelling PriceAnnual DemandAnnual ValueCumulative Value% Annual Value DuraBendTM R15$1.0329,563$30,331.64$30,331.6467.3% DuraBendTM R12$1.0012,096$12,096.00$42,427.6494.2% DuraFlexTM R10$0.681,167$793.56$43,221.2096.0% DuraFlexTM R15$1.14658$750.12... If you want to get a all-embracing essay, tack it on our website: OrderCustomPaper.com

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