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What if scenario (using the data below) ... The consulting agency could negotiate with the supplier that had the higher annual cost. At what target

What if scenario (using the data below) ... The consulting agency could negotiate with the supplier that had the higher annual cost. At what target cost per uniform does the higher cost supplier need to get down to in order to become the least cost supplier? Purchases 75 uniforms per week from a local laundry service at an average cost of $18.05 per uniform. The average lead-time is two days and delivers the uniforms in batches of 30. The standard deviation on the local laundry service lead-time has been one day. Another potential source that will charge $17.95 per uniform. They state they have an average lead-time of one week with a standard deviation of 3 days. Also require a minimum batch size of 150 uniforms

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