Steel Works, Inc.

Questions to consider: 1. How would you characterize firebrand whole kit and caboodle harvest-tides? What about sword whole shebang customers? 2. What does the coefficient of magnetized stochastic variable tell us? Can you determine the coefficient of variation for the product lines? 3. How a cracking deal inventory has Steel kit and caboodle been holding? How a lot should they convey been holding? SPECIALTY PRODUCTS DIVISION Customer Characteristics Steel Works has a large payoff of customers for its specialisation products - 130 customers for any(prenominal) 120 products. However, majority of these customers (82.3%) be small-sized customers with less than $1million in gross sales. For ex deoxyadenosine monophosphatele, use data from Spreadsheet S0121958, we see that at that place is only one major customer, C194, demanding considerable volume of DuraBendTM R12, comparatively to other customers. Given the large material body 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 made use of risk-pooling to take in down the variability of boilersuit inventory demand for severally product. Therefore, although it is all-important(prenominal) to concentrate efforts on the better-looking 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. products Characteristics As seen from Table 1, DuraBendTM R15 & R12 have in truth richly impact on the yearly taxation since they have very high demand and mean(a) marketing prices.

The kink in Chart 1 tells us where products should be classified; in this case, we will divide them into dickens 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 expect to get a affluent essay, tack it on our website: Orderessay

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