Question: Table 1 Demand forecast (weekly) 2000 units s demand forecast 600 units/week Desired cycle service 97% level Supplier lead time (fixed) 4 weeks Average Cost

 Table 1 Demand forecast (weekly) 2000 units s demand forecast 600units/week Desired cycle service 97% level Supplier lead time (fixed) 4 weeks

Table 1 Demand forecast (weekly) 2000 units s demand forecast 600 units/week Desired cycle service 97% level Supplier lead time (fixed) 4 weeks Average Cost $40 Average Retail Price $59.99 Shipping cost per order $1000 financial \& physical carry cost rate (h) 10% 1. Assume that LL Bean is considering consolidating four of its regional warehouses (each identical in profile to that described above) into two centralized DCs. Report the potential inventory holding and ordering cost savings from this move for the one item if Bean operates 50 weeks per year. Also, report any order response improvement you observe from the new plan. 2. Assuming this plan is executed correctly, per-unit transportation shipping costs will increase from \$1 per unit to $1.08 per unit. Report your analysis and recommend a final plan of action for LL. Bean

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!