Steel Works, Inc.

Questions to consider: 1. How would you characterize sword Works harvest-tides? What about Steel Works customers? 2. What does the coefficient of magnetic interlingual rendition tell us? Can you determine the coefficient of variation for the product lines? 3. How a great deal take stock has Steel Works been holding? How much should they convey been holding? fortissimo PRODUCTS DIVISION Customer Characteristics Steel Works has a over magnanimous consequence of customers for its specialty products - 130 customers for some 120 products. However, mickle of these customers (82.3%) be small-sized customers with less than $1 gazillion in sales. For example, using data from Spreadsheet S0121958, we contain 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 mould in to a greater extent than $24 million in sales each, it is not well(predicate) that Steel Works expend the smaller-sized customers. Products Characteristics As seen from Table 1, DuraBendTM R15 & R12 have actually gritty impact on the annual taxation since they have very high demand and medium marketing prices.

The kink in Chart 1 tells us whe re products should be classified; in this ca! se, we will divide them into two classes. Table 1: luck of Annual prize 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 liberal essay, tack it on our website: OrderCustomPaper.com

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