How much savings in holding cost can the firm expect

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Reference no: EM132753326

Question: Return to the Epson data in Exercise 15. Each printer costs Epson $200, and the annual holding cost is 25 percent. What saving in holding cost can Epson expect as a result of build-ing the European DC? If final assembly in the European DC adds $5 to the production cost of each printer, would you recommend the move? Suppose that Epson is able to cut the pro-duction and delivery lead time from its Taiwan factory to four weeks using good information systems. How much savings in holding cost can Epson expect without the European DC? How much savings in holding cost can the firm expect with the European DC?

Reference no: EM132753326

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