Question
Forecasting and inventory Len's Scrubby Buggy is a franchisee of Big Car Wash Supply (BCWS). The regional service manager comes to your store first thing
Forecasting and inventory "Len's Scrubby Buggy" is a franchisee of Big Car Wash Supply (BCWS). The regional service manager comes to your store first thing in the morning every Monday to deliver the proprietary wash chemicals along with taking your order for the next week. BCWS has invested heavily in technology to utilize advanced chemicals to produce a clean that is "out of this world". While the products are outstanding, the downside is the shelf life of chemicals is no more than 10 days after delivery. Each concentrated tub of chemicals can wash 250 cars and costs $100. Len estimates the cost to place an order is $10 and the holding cost per unit is 1% of the cost. BCWS gives a 10% volume discount for 15 or more tubs of chemicals. How much are you ordering next week, and what is forecast for the following week. Explain your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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