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A recent upswing in demand for PlastiPharm's medical device bags affected the company's warehouse's ability to store film, the key component needed for each of
A recent upswing in demand for PlastiPharm's medical device bags affected the company's warehouse's ability to store film, the key component needed for each of its products. A safety stock of film was required by several customers, and there was not enough room to keep the stock in the current warehouse. Therefore, the company conducted a total cost analysis to determine if it would be best to build another warehouse, add on to the existing warehouse, or lease space in a public warehouse that was located within five miles of the production facility. Which of the following criteria is of most importance in the analysis of the need for warehouse space? Analyzing product volume the warehouse will handle over time is the most important criterion to consider. The most important factor for determining warehouse need is the tradeoff between fixed and variable costs. Carefully considering warehouse needs for layout design is the first and most important criterion for the company to consider. The ability to automate a warehouse system and improve efficiency is the most important factor to consider in this situation
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