Question: Ted Stevens owns an internet - based bicycle accessories website that sells bicycle tires, tubes, chains, sprockets, and seats as well as helmets and water
Ted Stevens owns an internetbased bicycle accessories website that sells bicycle tires, tubes, chains, sprockets, and seats as well as helmets and water bottles. The bicycle partsaftermarket is competitive, and Ted realizes that having both a low price and sufficient inventory to offer sameday shipping are critical to his success. He has a global supply chain and relies on many different supplier sources for the quality products his customers demand.Ted sells more replacement tubes than any other product. For this item, customers expect high quality at a competitive price. Ted spent several months evaluating the qualny and performance of six potential suppliers for the most popular replacement tube, the presta tube. These suppliers manufacture replacement tubes of comparable quality and performance. With the right price, quality, and availability, Ted expects to sell an average of tubes per month, or tubes per day, for $ each; however, he is concerned about the amount of cash or working capital required to support the level of inventory he needs to provide sameday shipping.Using the information provided in the Excel file Chx
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