The hottest set top box available is made by Set Top Box International. Right now, they outsell both BestBuy and Target in terms of sales. Inventory, however, is a problem for Set Top Box International. Given the brief lifespan of their product. when a new product is introduced, companies frequently write off a sizable amount of their inventory. They currently operate a completely automated facility Allstate Rd, Boston. Each year, they sell roughly 960,000 units. Right now, they manufacture product until they have a full truck load (4,000 set tops), at which point they send a complete truck load to their Illinois distribution center for $600.00. Following that, the distribution center mails out individual units to online clients for a shipping and handling fee of $22.00. Retailers receive LTL truck shipments from the distribution facility. 400 of each are shipped out at a time. For these shipments, the distribution center charges $400.00. The distribution center also has a fixed monthly fee of $5,000 dollars. Set Top Box International sells its units online for $100 each, while charging $82 to large retailers like Wal-Mart. 30% of their clientele are retail clients. Each Set Top is produced at a cost of $53.00 to Set Top Box International.

• How much is the Set Top Box International currently making per month? Answer is $2,055,000. Already solved.
• UPS visits Set Top Box International and assures them that they can assist Set Top with retail shipments. They just need to recruit a part-time employee costing 2,000 to prepare monthly shipments. UPS will ship to any location Set Top desires for $400.00 each pallet of 400 set top boxes. How much money a month would Set Top Box save, taking UPS recommendation? Show work
• Set Top Box International has decided to go ultra-lean, and in order to do so, it will insource all single order online shipping. This effectively eliminates superuous inventory in the system. They cleared some oor space and hired employees to package, label, and ship the things. They projected that shipping and handling would be $27 per set top. This lean method would put an end to all excess inventory. How much money a month would Set Top Box save, taking the lean expert's advice? Show work