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You are the new supply chain manager. The inventory manager reports to you. You observe that shipments are trucked in every 25 to 35 days.
You are the new supply chain manager. The inventory manager reports to you. You observe that shipments are trucked in every 25 to 35 days. Your records show that the company sells 50,000 units per year and demand is quite stable from year to year and from month to month. The warehouse will hold 8,000 units. The product is worth $100 per unit. You estimate the carrying cost at 15% of the value of product per year. The accounts tell you that the annual inventory costs run between $30,000 and $35,000 per year. Which of the following questions are you most likely to ask your inventory manager? A) Why do we run out of stock so often? B) Do we sometimes find that we cannot unload trucks because our warehouse is full? OC) Why are our inventory costs so high? D) Why is our warehouse so large
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