Do you expect aggregation of inventory at one location to be more effective when a company such as Dell sells computers or when a company such as Amazon.com sells books? Explain by considering transportation and inventory costs.
Answer to relevant QuestionsHow would you characterize the competitive strategy of a high-end department store chain such as Nordstrom? What are the key customer needs that Nordstrom aims to fill? Discuss key drivers that may be used to tailor transportation. How does tailoring help? For a manufacturer that sells to many retailers, why does a quantity flexibility contract result in less information distortion than a buy-back contract? What revenue management opportunities are available to a trucking firm? How can it take advantage of these opportunities? Discuss some reasons why we do not see more recycling or remanufacturing of products.
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