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(a) Supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and the final product, and deliver them to customers. The key to a successful supply chain structure and operation depends upon a customer/supplier relationship based on partnership principles. Critically discuss the importance for companies to develop a supply chain strategy.
(b) Leal Communication Ltd stocks and sells Toshiba note-book. It costs the store $400 each time it places an order with the manufacturer. The annual cost of carrying the note-book in inventory is $150. The store manager estimates that the annual demand for such note-book will be 1200 units.
(i) Explain why organisations hold inventory.
(ii) Evaluate optimal order quantity and total annual inventory costs.
The Cardinal Electronics Company must project the sales of cellular phones for the next year (called year 2). The number of cell phones sold by Cardinal Electronics in each of the
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