Question
Medtronics manufactures and sells a variety of equipment used by doctors to help patients with their heart problems. Medtronics has a manufacturing plant located in
Medtronics manufactures and sells a variety of equipment used by doctors to help patients with their heart problems. Medtronics has a manufacturing plant located in Minneapolis. Its sales agents serve doctors all over the country. Currently all inventory is maintained with the sales agents. Medtronics is thinking of storing inventory in state headquarters in each state with the inventory shipped to sales agents as needed by them. The shipping to sales agents will be done using a courier who guarantees delivery with 6 hours. As a result of this change, how will inventory and transportation costs be impacted? Explain.
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