Question: ( Please use excel for solution and add picture from excel on answer section. ) Alvarez and Takamine are two Japanese guitar companies that share

(Please use excel for solution and add picture from excel on answer section.)
Alvarez and Takamine are two Japanese guitar companies that share a distribution and logistics hub for handling and shipping guitar orders to a major online retailer in North America. Uncorrelated Demand and related data profiles for each of the four guitar products at the Osaka Global Distribution Center are listed below. Any shipment has a common order cost of $1300 to the retailer's North American warehouse. Show the cost savings that could be achieved if packaging and shipping services could be aggregated for the four products listed below if the company spends $80,000 per year (every 12 months) to stage the facility for this function. Based on your analysis, should the companies proceed with the plan to perform this type of service? Please report lot sizes, order frequency (flow time), and costs for independent and joint ordering conditions to justify your analysis.
\table[[,\table[[A2204],[Prestige]],\table[[RG550],[Genesis]],\table[[Artist],[Pro]],\table[[ES-445],[Premier]]],[\table[[Forecast],[Demand],[(Monthly)]],10,000,15,500,8,500,3,650],[\table[[Product-specific],[order cost]],$150,$100,$250,$350
 (Please use excel for solution and add picture from excel on

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!