Question: The hottest set top box available is made by Set Top Box International. Right now, they outsell both BestBuy and Target in terms of sales.
The hottest set top box available is made by Set Top Box International. Right now, they outsell both BestBuy and Target in terms of sales. Inventory, however, is a problem for Set Top Box International. Given the brief lifespan of their product. when a new product is introduced, companies frequently write off a sizable amount of their inventory. They currently operate a completely automated facility Allstate Rd Boston. Each year, they sell roughly units. Right now, they manufacture product until they have a full truck load set tops at which point they send a complete truck load to their Illinois distribution center for $ Following that, the distribution center mails out individual units to online clients for a shipping and handling fee of $ Retailers receive LTL truck shipments from the distribution facility. of each are shipped out at a time. For these shipments, the distribution center charges $ The distribution center also has a fixed monthly fee of $ dollars. Set Top Box International sells its units online for $ each, while charging $ to large retailers like WalMart. of their clientele are retail clients. Each Set Top is produced at a cost of $ to Set Top Box International. According to a yearend audit, Set Top Box International was writing off at least set top boxes every year of excess inventory at their distribution facility because the boxes were obsolete when the new model was released. With this new gathered information, what would Set Top Box International do
A Go with the original model and only add the UPS model
B Go with the original model and only add the lean model
C Go with the original logistics model
D None of the Above
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