Question: Question 1: The manager at the supermarket wants to decrease the lot size without increasing the costs he incurs. What actions can he take to

Question 1:

  1. The manager at the supermarket wants to decrease the lot size without increasing the costs he incurs. What actions can he take to achieve his objective?
  2. When are quantity discounts justified in a supply chain?

Question 2:

  1. Explain how a reduction in lead time can help a supply chain reduce safety inventory without hurting product availability.
  2. Describe the two types of ordering policies and the impact that each of them has on safety inventory.

Question 3:

  1. Consider two products with the same cost but different margins. Which product should have a higher level of product availability? Why? Explain how
  2. How can postponement of product differentiation be used to improve supply chain profitability?

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