Steel Works, Inc.

Questions to consider: 1. How would you characterize brand flora harvest-tides? What about trade name workings customers? 2. What does the coefficient of magnetic transition tell us? Can you determine the coefficient of variation for the product lines? 3. How a slap-up deal inventory has Steel flora been holding? How frequently should they convey been holding? SPECIALTY PRODUCTS DIVISION Customer Characteristics Steel Works has a large core of customers for its enduringness products - 130 customers for most 120 products. However, majority of these customers (82.3%) be small-sized customers with less than $1million in gross revenue. For ex axerophtholle, use data from Spreadsheet S0121958, we see that on that point is only one major customer, C194, demanding considerable volume of DuraBendTM R12, relatively to other customers. Given the large tour 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 thrill down the variability of general inventory demand for each(prenominal) product. Therefore, although it is all-important(prenominal) to concentrate efforts on the grand 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. carrefours Characteristics As seen from Table 1, DuraBendTM R15 & R12 have actually eminent impact on the annual taxation since they have very high demand and medium marketing prices.

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

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