USE INFO IN QUESTION 1 AND/OR 2 TO ANSWER 3 AND 4.

1. The most modern induction fan set in the market is the World IPTV Fan. Walmart and eBay are currently selling out of them. However, World IPTV Fan is saddled by Inventory. For the reason that their product has a short life cycle, they every so often write off a large segment of their inventory when a new product is launched. Its current fully automatic factory is located in Ludlow St, New York. Per year they sell about 720,000 units. At present, they produce products until they complete a full truck load (6000 fans), only then they will ship full load of truck to the respective distribution center in New York at a price of $500.00. Then the distribution center sends the goods off to the individual internet buyers for $20.00 for handling and shipping. The distribution center sends out LTL truck shipments to retailers with a $500.00 Charge for a shipment and in quantities of 600 each. Furthermore, there is a $5000 fixed monthly charge from the distribution center. World IPTV fans for $100.00 per unit to the internet customers and $95 for bulk retail customers like Target. The customer base, retail customers make up to 25%. To make each IPTV fan it costs around $74. How much is the World IPTV Fans currently making per month?

CORRECT ANSWER IS $562,500.

2. FedEx visits the World IPTV Fans and makes the case that they can help them to do the retail shipments. For this, IPTV Fans has to hire a part time worker costing $2,000 per month to arrange the consignments. And then FedEx will transport product to retail customers anywhere IPTV Fans wants for $300.00 per pallet of 600 boxes. How much does IPTV Fan could save monthly, if take FedEx as consideration?

CORRECT ANSWER IS $4,250.

3. World IPTV Fan has concluded by saying that they are going to go super lean. In order to do this they have to insource all single order internet consignments. By doing this, they can cut off more inventory to zero in the system. They hired some people to package the goods, label and ship the items and also cleaned out space in the shop and floor. They estimated $23 for shipping and handling per IPTV Fans. How much could IPTV Fans save, by considering the lean experts advice?

$6,400

$5,000

They would lose money

Neutral no loss but also no gain

4. A twelve-month audit revealed by saying that the World IPTV Fan was writing off a bare minimum of 2,000 IPTV Fans annually in their distribution center since the IPTV Box were outdated when the new version is launched in the market. With this new data of information, what must IPTV Box do?

Use the lean option and the FedEx option

Go with the original model and only add the FedEx option

None of the Above