1 A supplier makes monthly shipments to House & Garden Stores, in average lot sizes of 200...

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1 A supplier makes monthly shipments to ‘House & Garden Stores’, in average lot sizes of 200 coffee tables. The average demand for these items is 50 tables per week, and the lead time from the supplier 3 weeks. ‘House & Garden Stores’ must pay for inventory from the moment the supplier ships the products. If it is willing to increase its lot size to 300 units, the supplier will offer a lead time of 1 week. What will be the effect on cycle and pipeline inventories?

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Operations Management

ISBN: 978-1292408248

10th Edition

Authors: Nigel Slack ,Alistair Brandon-Jones ,Nicola Burgess

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