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An online retailer of a single product has four major markets in the four "corners" (North-East, South-East, North-West and South-West) of a country. Assume that daily demand in each market is exactly 10 units. The retailer currently has a distribution center located in each of the corners to ensure that customer orders can be fulfilled quickly. The distribution center replenishes its inventory from the manufacturer at a unit cost of $3200 and a fixed ordering cost of $62500 per order. The cost of capital for this retailer is 0.2 $/$/year. There is now a proposal to consolidate the inventory of this firm at one central distribution center and to close the four regional distribution centers. Assume that sales will not be affected by the increased order fulfillment times caused by this change to the supply chain. How does the cost per unit (taking ordering costs and inventory holding costs also into account) change for this retailer by this supply chain change?
The Japanese firm Matsushita has a business philosophy from the strong founder Konosuke. This business philosophy was codified as the "Seven Spiritual Values" of Matsushita that al
Tim is a director and officer of United States Sales, Incorporated. Tim makes a marketing decision that results in a dramatic decrease in profits for United States Sales and its sh
A wine company's daily demand is normally distributed with a mean of 18 bottles, and a standard deviation of 4 bottles. This company checks their winery's stock every 30 days. In t
For the linear program Max 3A + 2B s.t. A + B ? 4 3A + 4B ? 24 A ? 2 A - B ? 0 A, B ? 0 a. Write the problem in standard form. b. Solve the problem. c. What are the values of the s
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Exponential smoothing adds a percentage (called) of last period's forecast to estimate next period's demand
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