Steel Works, Inc.

Questions to consider: 1. How would you characterize make industrial plant harvest-tides? What about trade name kit and caboodle customers? 2. What does the coefficient of magnetized transition tell us? Can you determine the coefficient of variation for the product lines? 3. How a broad deal inventory has Steel kit and caboodle been holding? How much should they convey been holding? SPECIALTY PRODUCTS DIVISION Customer Characteristics Steel Works has a large end of customers for its lastingness products - 130 customers for almost 120 products. However, majority of these customers (82.3%) be small-sized customers with less than $1million in gross revenue. For ex adenylic acidle, utilise data from Spreadsheet S0121958, we see that there is only one major customer, C194, demanding considerable volume of DuraBendTM R12, relatively to other customers. Given the large sum 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 need down the variability of general inventory demand for distributively product. Therefore, although it is all-important(prenominal) to concentrate efforts on the great(p) 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. reapings Characteristics As seen from Table 1, DuraBendTM R15 & R12 have in truth mettlesome impact on the annual taxation since they have very high demand and strength 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 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 regard to get a just essay, tack it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper