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Fresh out of college, Monica Larsen's first assignment in her new job as a purchasing agent at Aggie Gifts was to decide whether to continue

Fresh out of college, Monica Larsen's first assignment in her new job as a purchasing agent at Aggie Gifts was to decide whether to continue to purchase a boxed pen set from an existing supplier or consider a proposal from a new supplier. She also had to evaluate whether current purchasing practices were effective. Aggie Gifts bought pen sets from Pens for You for $21/set. Pens for You shipped products from its factory in China with a delivery lead time of six weeks, charging a processing fee of $150/order. The lead time for Pens for You showed a standard deviation of 1.2 weeks. However, Penultimate, a relative newcomer to the industry, had offered a similar set that it produced in the U.S. but cost $28/set. Penultimate however promised four week delivery and charged only $125/order. The lead time for Penultimate also showed a standard deviation of 1.2 weeks.

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