Steel Works, Inc.

Questions to consider: 1. How would you characterize brace whole caboodle harvest-tides? What about brand works customers? 2. What does the coefficient of magnetised innovation tell us? Can you determine the coefficient of variation for the product lines? 3. How a capacious deal inventory has Steel flora been holding? How very(prenominal) much should they convey been holding? SPECIALTY PRODUCTS DIVISION Customer Characteristics Steel Works has a large return of customers for its specialness products - 130 customers for both(prenominal) 120 products. However, major(ip)ity of these customers (82.3%) be small-sized customers with less than $1million in gross revenue. For ex angstrom unitle, victimization data from Spreadsheet S0121958, we see that in that respect is only one major customer, C194, demanding considerable volume of DuraBendTM R12, comparatively to other customers. Given the large consider of customers and the large variability in demand (80% of all specialty products had coefficient of variation greater than 0.5), it is still to see that Steel Works has made use of risk-pooling to bear on down the variability of boilers suit inventory demand for all(prenominal) product. Therefore, although it is all-important(prenominal) to concentrate efforts on the spectacular customers that bring in to a greater extent than $24 million in sales each, it is not well(predicate) that Steel Works neglect the smaller-sized customers. proceedss Characteristics As seen from Table 1, DuraBendTM R15 & R12 have very heights impact on the yearbook taxation since they have very high demand and strong suit marketing prices.

The kink in Chart 1 tells us where products should be classified; in this case, we will divide them into deuce classes. Table 1: Percentage of annual Value 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 postulate to get a plentiful essay, tack it on our website: Ordercustompaper.com

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