Question: ancy Paints purchases a color - mixing machine. It allows Fancy Paints to store only a base liquid and then use small color tablets to
ancy Paints purchases a colormixing machine. It allows Fancy Paints to store only a
base liquid and then use small color tablets to quickly create any of the above SKUs.
This requires carrying inventory of color tablets but they are inexpensive and easy to stock
in very large quantities. Ignoring tablets for now, how much average inventory of base
liquid should be kept at the store? Lead time and service level remains the same.
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