4. Using the following diagram and table, answer subsequent three questions (a.b.c): STORE1 WAREHOU MANUFAC ER STORE 2 Store 1 Store 2/Warehouse 85 10 Avg Demand (daily) std demand 55 3 lead time...
Please answer the following 4 questions based on the same problem: A small shop implemented a continuous review policy in managing its inventory with the given parameters for one item: Annual demand: 15,000 units Holding costs: 40% of purchase price per year. Landed purchase cost: $10 Setup cost: $75 per order Number of working days per calendar year: 250 Lead time: 3 days Required service level: 95% 1. Determine the reorder point, assuming no safety stock. Round your answer to...
Discussion Questions: 1. What is the purpose of a distribution center? 2. Why does Cameron have eight warehouses? Why do you think Kelly believes six warehouses is better than eight? 3. What is the cost of holding inventory at Cameron? 4. Why should the decision to invest in inventory be different from investing in capital? 5. Do you think it is prudent to evaluate the future of the Atlanta warehouse independently from consideration of the other seven warehouses in the...