Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored 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