9. What is the cost saving to the customer resulting from a manufacturer's ability to reduce variability

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9. What is the cost saving to the customer resulting from a manufacturer's ability to reduce variability by two days, given the following information:

a. Average sales of 40 cases per day.

b. Purchase price per case of $45.

c. Transportation cost per case of $5.

d. Order cycle of 10 days.

e. Inventory carrying cost of 40 percent.

How does this compare with the cost saving associated with a two-day reduction in the order cycle with no change in order cycle variability?

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Fundamentals Of Logistics Management

ISBN: 98357

1st Edition

Authors: Douglas M. Lambert , David B. Grant , James R. Stock

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Question Posted: Sep 20, 2024 01:00 AM

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9. What is the cost saving to the customer resulting from a manufacturer's ability to reduce variability

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Fundamentals Of Logistics Management

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