1. Define Sustainable Competitive Advantage (SCA). Do you think it is possible for a business to create an SCA? Defend your answer with examples.
2. The Wood Factory produces wood pellets at a rate of 6,000 annually with a machine setup cost of $100. The annual demand for pellets is 4,500. Annual holding costs are 10% of the pellet unit cost of $15. The factory operates 250 days per year. Determine:
a) The optimal run size or EPQ.
b) The cycle time.
c) Production time.
d) The total annual cost to carry and produce carpet rolls based on the optimal run size.