... CRU's utilization rate achieved for 1996 we examined their current average inventory on hand. For the numerator we multiply 1,000 units are out for rent each week, and there are 8 cycles of 1,000 units rented currently; therefore, the total number of units rented is 8,000. The following is a list of the remaining units owned by CRU: Units waiting to be received 500 Units in status 40 1,000 Units in status 24 1,500 Units in status 42 500 Units in status 41 905 Units in status 20 2,000 The total number of inventory owned by CRU is 14,405, and the utilization rate achieved by CRU is 55.53% (8,000/14,405). Now we try to compute the average buffer time endured by each unit. For S20 we sustained the required two times the inventory rented each week, which equals 2,000. For S41 we are told that in 1996 there are 500 units in S41 that weren't in the system. The remaining ...

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