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Y our firm sells to wholesalers nationwide. Your bank has just completed a lockbox study of your cash collection system. After a thorough study of
Y our firm sells to wholesalers nationwide. Your bank has just completed a lockbox study of your cash collection system. After a thorough study of your remittance information, they categorized your customers into four groups as shown below. Your annual opportunity cost of funds is 5%.
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Use the complete enumeration model to determine the optimal number of lockbox sites and the customer allocation among the chosen sites.
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