Question: Based on Case please provide answer to number 4 After making some wise short-term investments at a race track, Chris Low had some additional cash

Based on Case please provide answer to number 4 Based on Case please provide answer to number 4
Based on Case please provide answer to number 4
After making some wise short-term investments at a race track, Chris Low had some additional cash to invest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000kegs, and they were sold to retail customers in an even flow. Low was uncertain how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without regard to size, and warehousing costs, which were $1 per year per keg space. This meant that Low had to rent a constant amount of warehouse space for the year, and it had to be large enough to accommodate an entire order when it arrived. Low was not worried about maintaining safety stocks, mainly because the outward flow of goods was so even. Low bought his nails on a delivered basis. 4. Recommendations: (a) Decision: What alternative would you recommend, and why? (b) What implementation problems are the decisionmaker likely to face? How would you address them

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