Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Table 1 Demand forecast (weekly) 2000 units s demand forecast 600 units/week Desired cycle service 97% level Supplier lead time (fixed) 4 weeks Average Cost

image text in transcribedimage text in transcribed Table 1 Demand forecast (weekly) 2000 units s demand forecast 600 units/week Desired cycle service 97% level Supplier lead time (fixed) 4 weeks Average Cost $40 Average Retail Price $59.99 Shipping cost per order $1000 financial \& physical carry cost rate (h) 10% 1. Assume that LL Bean is considering consolidating four of its regional warehouses (each identical in profile to that described above) into two centralized DCs. Report the potential inventory holding and ordering cost savings from this move for the one item if Bean operates 50 weeks per year. Also, report any order response improvement you observe from the new plan. 2. Assuming this plan is executed correctly, per-unit transportation shipping costs will increase from \$1 per unit to $1.08 per unit. Report your analysis and recommend a final plan of action for LL. Bean

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Project Management Made Simple

Authors: Terry Schmidt

2nd Edition

1119718171, 978-1119718178

More Books

Students also viewed these General Management questions

Question

Describe the linkages between HRM and strategy formulation. page 80

Answered: 1 week ago