1. How does an organization decide which internal and external factors it needs to keep an eye on? How do you know which factors the strategy is premised on?

2. Have you been involved in any six-sigma project? If yes, what kind of project was it? Was it considered a success? If not, cite an example of 6-sigma efforts and compare the actual outcome to the initial expectations.

3. C&H purchases cases of fertilizer for its lawn-care business from a supplier who charges C&H $40 per order and $50 per case. Each case consists of five bags of fertilizer. C&H needs 2000 bags of fertilizer a year. C&H’s annual holding costs are 30%. Assuming that C&H operates optimally, how many cases does C&H have in inventory on average?