Question
A large Home Depot store sells 100 fence posts on Monday,Tuesday, Wednesday, Thursday, Friday, Saturday and Sunday: 700 aweek every week of the year. Currently
A large Home Depot store sells 100 fence posts on Monday,Tuesday, Wednesday, Thursday, Friday, Saturday and Sunday: 700 aweek every week of the year. Currently to serve this demand(do not consider safety stock) a truck delivers 300 posts on earlyMonday morning and another 400 fence posts on early Thursdaymorning before the store opens. The regional Home Depot Centersends seven trucks twice a week (on Monday and Thursday) to thestore to deliver the fence posts and a lot of other inventory.
It is proposed to change delivery to a truck every day to thestore and this way 100 fence posts a day can be delivered early inthe morning (6am) to the store by a truck.
1. What is Home Depot's reduction in average inventoryof posts carried each night, over the week.
2. What is Home Depot's reductionin annual average inventory carrying costs of posts if it costs $20a year to carry a post in inventory in the store?
3. What is being synchronized in this change inprocess?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started