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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.
Explain Economic Order Quantity and Total Cost. Economic Order Quantity and Total Cost: The total sum of Inventory procurement cost and inventory carrying cost is total cost.
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The forecasted demand for fudge for the next four months is 140, 160, 90 and 70 pounds. A) What is the recommended production rate if a level strategy is adopted with no back order
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