Sarah D sells 10,400 CDs every year. DigiSound wholesales them to her for S3.50 each for orders
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Sarah D sells 10,400 CDs every year. DigiSound wholesales them to her for S3.50 each for orders in excess of 250 CDs and S4.00 for smaller orders. There is a S10.00 processing and delivery charge for each shipment, regardless of its size. Sarah D finances her orders on her MasterCard with an annual interest rate of 20%. New York State has a real property tax of 5% on annual inventory value. Sarah D currently buys 200 CDs every week.
Evaluate Sarah D's current inventory management. Give her a better inventory management plan if there is a better one.
Related Book For
Matching Supply with Demand An Introduction to Operations Management
ISBN: 978-0073525204
3rd edition
Authors: Gerard Cachon, Christian Terwiesch
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