You are testing the idea of selling WSOM Spirit items and, having just aced the MBAC-507...
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You are testing the idea of selling WSOM Spirit items and, having just aced the MBAC-507 final exam, you want to apply your new skills to optimize your inventories. Your first item, the "WSOM Rocks" T-shirt is a hot item. Each unit sells for $20 and is sourced from an efficient vendor in Toronto for $10 (including shipping costs to Cleveland). Assume that over-ordering can be corrected monthly. However, you have the ability to make the T-shirt in your back room, nearly instantaneously, at a cost of $15, if you run out of a given size. You finance your inventories with a line of credit with an annual rate of 10%. Your mission is to determine the percent of demand you choose to protect with safety stock inventory. Hint: Consider the Critical Fractile (C₁ ÷ {C₁+Co}). Note: please show your calculations to ensure as much credit as possible. You are testing the idea of selling WSOM Spirit items and, having just aced the MBAC-507 final exam, you want to apply your new skills to optimize your inventories. Your first item, the "WSOM Rocks" T-shirt is a hot item. Each unit sells for $20 and is sourced from an efficient vendor in Toronto for $10 (including shipping costs to Cleveland). Assume that over-ordering can be corrected monthly. However, you have the ability to make the T-shirt in your back room, nearly instantaneously, at a cost of $15, if you run out of a given size. You finance your inventories with a line of credit with an annual rate of 10%. Your mission is to determine the percent of demand you choose to protect with safety stock inventory. Hint: Consider the Critical Fractile (C₁ ÷ {C₁+Co}). Note: please show your calculations to ensure as much credit as possible.
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To determine the percent of demand to protect with safety stock inventory we need to ... View the full answer
Related Book For
Business Statistics A First Course
ISBN: 9780321979018
7th Edition
Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan
Posted Date:
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