Question: D&B management is considering a proposal to design a modular power plug connector so that only the base unit ( device without the power plug
D&B management is considering a proposal to design a modular power plug connector so that only the base unit device without the power plug can be sourced from the Taiwanese supplier, and the power plug can be assembled at D&Bs own processing facility near Hamburg, Germany. Proximity of this facility to an established seaport will also enable D&B to use ocean shipping from Taiwan instead of air freight Ocean shipping would cost only $ per item, but have a lead time of weeks on average with a standard deviation of weeks. The final assembly operation and additional transportation from the Hamburg facility to the DC in total would cost $ per item, but the manufacturer's price would be lowered to $ Vs The holding cost rate for the base unit will drop to and D&B will keep using the same periodic review policy. Assume that D&B will be able to negotiate to take ownership of these items shippr via ocean only on delivery.c Using the values you've calculated, accurately describe D&Bs inventory ordering policy for the base unit.d What is D&Bs total annual cost of Model SF with postponement? Does it make sense to implement the postponement idea?
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