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The Miami bookstore orders MacBook Air from Apple and then sells them to students and faculties. To provide a good customer service, it is critical for the bookstore to manage the inventory of MacBook Air well. Meanwhile, Apple also needs to manage the components of MacBook Air to ensure timely manufacturing once receiving customers’ orders from the bookstore.
1. What type of inventory management model should the bookstore use to manage the inventory of MacBook Air? And why?
2. Would Apple use the same inventory model adopted by the bookstore to manage the inventory of MacBook Air components? And why? How should Apple manage the inventory of MacBook Air components?
3. If Apple agrees to cut the order lead time in half, how would this change affect the bookstore’s inventory policy (i.e., when to order, and order size)?
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