During each year, CSL Computer Company needs to train 27 service representatives. It costs $12,000 to run a training program, regardless of the number of students being trained. Service reps earn a monthly salaryof $1500, so CSL does not want to train them before they are needed. Each training session takes one month. a. State the assumptions needed for the EOQ model to be applicable. b. How many service reps should be in each training group? c. How many training programs should CSL undertake each year? d. How many trained service reps will be available when each training program begins?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 16PB: At Stardust Gems, a faux gem and jewelry company, the setting department is a bottleneck. The...
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During each year, CSL Computer Company needs to
train 27 service representatives. It costs $12,000 to run
a training program, regardless of the number of students being trained. Service reps earn a monthly salaryof $1500, so CSL does not want to train them before
they are needed. Each training session takes one month.
a. State the assumptions needed for the EOQ model
to be applicable.
b. How many service reps should be in each training
group?
c. How many training programs should CSL undertake each year?
d. How many trained service reps will be available
when each training program begins?

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