Question: A few years later a new technology allowed for in-store customization of colour. A small amount of colouring agents would be mixed in a can

 A few years later a new technology allowed for in-store customization

A few years later a new technology allowed for in-store customization of colour. A small amount of colouring agents would be mixed in a can of neutral coloured paint. Consequently, the store only needed to stock one-gallon cans of neutral coloured paint since the equipment included the colouring agents for the 75 colours. Demand, unit costs, capital cost, service level and lead time remained the same. [3 points] What was the resulting annual holding cost for safety stock for the neutral coloured paint? Based on your previous answer, how much could they save with the new technology? A few years later a new technology allowed for in-store customization of colour. A small amount of colouring agents would be mixed in a can of neutral coloured paint. Consequently, the store only needed to stock one-gallon cans of neutral coloured paint since the equipment included the colouring agents for the 75 colours. Demand, unit costs, capital cost, service level and lead time remained the same. [3 points] What was the resulting annual holding cost for safety stock for the neutral coloured paint? Based on your previous answer, how much could they save with the new technology

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