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Assuming a 20% gross margin and average selling price of $660 for each printer, inventory holding costs of 50% per year, sea transportation costs of $1 per printer (lead-time 5 weeks) and air transportation costs of $11 per printer (lead-time is 3 days), compute the total supply chain cost (inventory and transportation) for a 5-week sea shipment lead-time and a 3-day air shipment lead-time.

Operation Management, Management Studies

  • Category:- Operation Management
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